Shall we try to get back to the topic?
In the paid section of Spiegel-Online there was an interesting article yesterday about the increased construction costs (especially for wood).
What is interesting is: normally 40% of the wood from the sawmills goes abroad.
In the first quarter of 2021 it was... drumroll... also 40%.
The higher demand from the USA and China is a fact, though.
This suggests that on the one hand intermediaries want to enrich themselves, hoping for even higher price increases and are stockpiling the wood first.
On the other hand, it is probably a fact that many craftsmen made panic buys in the first quarter out of exactly this fear of price increases and unavailability. Our architect confirmed this to us today. Her carpenter partner companies all stockpiled until summer.
So we partly have the toilet paper effect from spring 2020. Out of fear that soon nothing will be left everyone stockpiles. And suddenly there really seems to be nothing left. The prices of the available products are shooting into astronomical heights.
Industry experts expect, however, that the price spiral will soon end and the bubble will burst. The market is already reacting. Construction projects are being postponed or alternative materials are being used.
Let’s hope so. And at least that the intermediary vultures will burn their fingers with it.