Ukrainian indices can not only be compared with international ones,but also surpass them – Kostiantyn Shevchuk

Starting from July 1, 2021, the sale of untreated timber in Ukraine is mandatory only through licensed commodity exchanges. This reform is aimed at increasing the transparency and efficiency of the timber market and preventing corruption schemes.

The Ukrainian Energy Exchange was the first in Ukraine to receive a license to conduct such trading. The UEEX team is constantly offering new modern tools to the market, and to create a benchmark and transparency, the UEEX has introduced weighted average price indices. They can be viewed by anyone on the exchange’s website in the “Exchange Quotes” section.

Recently, in an article by Ekonomichna Pravda, the company’s deputy CEO, Kostiantyn Shevchuk, said that the UEEX presented updated free price indices for untreated timber.

They are created for the roundwood and firewood segments and are provided on a daily, weekly, monthly, and quarterly basis. Their calculation is based on different levels of data aggregation: by all breed parameters, by species and quality class, by species in a particular region, and by all species parameters in a region.

- Developing a methodology for calculating price indices for unprocessed timber has become an important task for us. We wanted to create a reliable and transparent system that would reflect market dynamics based on reliable data. To this end, we have integrated statistical methods and modern technologies to ensure that the indices are regularly updated and respond quickly to market fluctuations, - says Kostiantyn Shevchuk.

The experience of other countries, such as Poland, the United Kingdom, Austria, and Lithuania, was also taken into account when developing the updated indices.

Ukrainian indices can now not only be compared with international indices, but also surpass them. While information on timber trade in the world remains rather limited and simplified, and may be limited or non-existent, our indices demonstrate a new level of analytical depth. This creates a unique opportunity for the Ukrainian market to present itself in a more transparent and accessible way. “Ukrainian price indices, which are published on a regular basis and according to a widely available methodology, can serve as an example for many global players,” - adds Kostiantyn Shevchuk.

The UEEX team expects that the updated indices will become a reliable barometer of market dynamics, able to respond quickly to changes and help market participants make informed decisions.