German Timber prices see an upturn in February

Good news for contractors and landowners as German timber prices for roundwood saw a significant rise this month.

Due to the lower beetle infestation in many regions, demand is often higher than the current timber supply. German timber prices for spruce sawlogs in particular continued to rise in February, according to forest owner associations following the conclusion of new contracts.

For spruce, prices of 105 to 115 euros per cubic metre (plus VAT) are quoted on average for fixed length and long timber for quality B/C in strength class 2b+. Individual buyers pay an additional bonus for required length mouldings.

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For beetle wood, 15 euros less is usually paid and the discount for D-wood is 25 euros per cubic metre. This means that prices have risen by 5 to 10 euros this year. Pine sawlogs are also benefiting from the robust demand and prices are also rising. The reason for this is the continuing low availability of high-quality round timber.

Forest owners’ associations explain the price increase with the very low quantities of damaged timber compared to previous years. Added to this is apparently the recent resurgence in exports to the USA – which is boosting demand and driving up prices, according to timber traders and sawmills.

Exports play an important role in the development of timber prices in Germany. The introduction of additional 25 per cent tariffs on Canadian softwood lumber could further improve sales opportunities for German timber exporters. However, a European trade war with the USA could quickly block this sales channel again.

Industrial wood and energy wood are not (yet) benefiting
The current good export opportunities can at least partially offset the weak sales of sawn timber on the domestic market. Nevertheless, the poor state of the construction industry in Germany has so far prevented a recovery in sawn timber prices.

Pine sawlogs are also benefiting from robust demand and prices are also rising. This is due to the persistently low availability of high-quality round timber.

The sawmill industry therefore continues to have problems selling sawn timber in large quantities on the domestic market. As the outlook for the construction industry in Germany is not expected to improve according to current forecasts and the economic outlook for 2025 is very weak overall, no significant recovery in demand for construction timber and therefore sawn timber prices is expected. Unless supply is further reduced by strong exports and a low volume of damaged timber.

The paper, pulp and panel industry continues to be well stocked with softwood industrial timber and production volumes have also been reduced recently. Industrial timber prices were therefore lowered at the beginning of the year. However, the already reduced prices have largely been able to maintain their current level. Forest owners’ associations are also expecting continuous sales in the coming months, which should at least support prices.

The market situation is similar for energy wood, where prices fell in autumn last year but are now largely holding their own. The sales situation for wood chips is apparently difficult in some regions.

Source: agrarheute.com