yesterday at 12:29
,Germany
Market research shows that „the import of cheaper timber from neighboring countries significantly restricts the demand for Bulgarian softwood timber for processing“. Price competition is pushing local raw materials out across the entire supply chain – from extraction through processing to the sale of finished products. At South Central State Enterprise (SCDP) – Smolyan, the impact is already measurable in specific volumes: the sale of softwood timber has fallen to about 65% of the planned annual target amid weaker interest from processors.
At the same time, a decline in demand for firewood is also being reported. As of October 31, 2024, around 199,000 cubic meters have been sold, compared to 252,000 cubic meters for the same period the previous year. Against this backdrop, the enterprise has announced the auction session for 2025 with starting prices reduced by about 10% in an attempt to revive market interest.
The main factor behind the weaker sales in the region remains „low interest from processing companies“. Industry representatives note that „there is a lack of market for finished products“, which limits production activity. Adding to this is a second key factor, as articulated by the processors themselves: „imports create strong price competition“, which squeezes margins and complicates long-term planning of supplies from Bulgarian producers.
The management of SCDP also highlights the price factor as decisive.
„Timber is being imported at prices lower than those in our country, which limits the opportunities for selling Bulgarian raw materials“, commented Eng. Elin Lilov.
According to him, this directly affects sales and negotiations in an environment where buyers primarily compare offers based on price criteria.
The pressure on revenues is further intensified by a second parallel decline – in firewood sales. Data as of the end of October 2024 shows a clear drop in sales compared to the previous year. The main reason cited is „households switching to pellets and air conditioners“, especially in larger cities. This trend is gradually changing the traditional seasonal demand profile and reducing the role of firewood as a primary energy source.
Measure for 2025: Lower Starting Prices and High Stakes for the Region
In response to the market situation, SCDP has already announced the auction session for 2025, with starting prices reduced by about 10% to stimulate demand. The expectation is that this measure will improve the competitiveness of the offered timber and rekindle the interest of processors amid heightened price pressure from imports.
The issue also has a clear socio-economic dimension. „Sustainable timber sales are crucial for the livelihoods of over 2,000 employees“ and for the stability of the forestry sector in the region. SCDP is the largest forestry enterprise in the country, with 35 territorial divisions (SFE/SFH) across the regions of Smolyan, Plovdiv, Pazardzhik, and Kardzhali. This makes the market dynamics at the enterprise an important indicator of broader trends in the Bulgarian forestry industry.
