{"id":100606,"date":"2026-11-12T06:10:01","date_gmt":"2026-11-12T06:10:01","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=100606"},"modified":"2026-11-12T22:19:43","modified_gmt":"2026-11-12T22:19:43","slug":"german-log-prices-begin-to-fall-as-sawmills-cut-purchases-and-demand-stays-weak","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/german-log-prices-begin-to-fall-as-sawmills-cut-purchases-and-demand-stays-weak\/","title":{"rendered":"German log prices begin to fall as sawmills cut purchases and demand stays weak"},"content":{"rendered":"

Germany\u2019s softwood log market is losing some of the price strength that persisted through much of 2026. Spruce prices have fallen in several areas, sawmills are limiting purchases, and additional supplies of beetle-damaged and drought-affected timber are reaching the market. For processors, however, cheaper logs offer only partial relief: weak construction demand continues to restrict sawn timber sales, while falling North American prices threaten export returns.<\/p>\n

Reports from forest-owner organisations show how the slowdown is moving back through the supply chain. Mills facing limited sales opportunities are reducing production to prevent finished stocks from accumulating. Lower log consumption is weakening sellers\u2019 bargaining position, even where prices remain high by historical standards.<\/p>\n

Spruce prices retreat as mills restrict intake<\/strong><\/p>\n

In southern Germany, sawn timber sales have failed to recover significantly in recent months, forcing some mills to reduce cutting. Log collections consequently slowed for a period, although transport and collection conditions subsequently improved. Late-October quotations for fresh spruce in fixed lengths, grades B\/C and diameter class 2b and above, stood at \u20ac112\u2013115\/m\u00b3 for contracts running through December.<\/p>\n

Elsewhere in southern Germany, larger sawmills are struggling with sales and restricting intake, while smaller local mills continue to offer purchasing opportunities. Reported reductions of \u20ac5\/m\u00b3 across assortments have brought spruce in diameter class 2b and above to approximately \u20ac120\/m\u00b3 and comparable pine to \u20ac85\/m\u00b3.<\/p>\n

In southwestern Germany, reductions of \u20ac8\u201310\/m\u00b3 for spruce and fir were already reported in late September. Increased supplies of timber affected by drought and bark beetles contributed to the correction. The spruce benchmark stood at \u20ac125\u2013128\/m\u00b3, although that quotation predates the more recent reports from southern Germany.<\/p>\n

Supply pressure varies between areas. Some forest-owner organisations in southern Germany reported beetle-damaged volumes comparable with the previous year, rather than an exceptional surge. In parts of southwestern Germany, damaged timber supplies increased noticeably. The price correction therefore combines changes in local availability with weaker purchasing by sawmills.<\/p>\n

Discounts for damaged timber also vary substantially. Reports from southern Germany place beetle-damage deductions at \u20ac20\u201325\/m\u00b3. Some spruce and fir agreements in southwestern Germany, however, carried no separate beetle discount under the terms reported in September.<\/p>\n

More housing permits have yet to deliver stronger timber demand<\/strong><\/p>\n

Germany\u2019s housing pipeline is improving, but the increase in approvals has not yet produced a convincing recovery in demand for construction timber.<\/p>\n

Destatis reported permits for 169,400 dwellings between January and August 2026, up 12.1% from the same period a year earlier. August alone accounted for 20,600 approvals, an increase of 6.8%. Permits for dwellings in newly built residential buildings rose by 12.7% over the first eight months.<\/p>\n

The industry nevertheless entered 2026 from a severely depressed level of completed construction. Housing completions fell by 18% in 2025. At year-end, 760,700 approved dwellings remained unfinished, of which 307,200 were already under construction. A further 35,700 dwelling permits expired during the year, the highest number since 2002.<\/p>\n

Those figures help explain why rising approvals can coexist with weak sawmill order books. Developers still have to secure financing and proceed with projects before permits become orders for structural timber, roof components and other building products.<\/p>\n

Recent construction orders also show an uneven recovery. In August, real, calendar-adjusted orders across the main construction industry increased by 17.3% year on year, but the gain came from civil engineering, where orders rose by 36.4%. Building construction orders fell by 1.7%. For suppliers serving residential and commercial buildings, the headline construction increase therefore overstates the improvement in their immediate market.<\/p>\n

Turnover holds near last year\u2019s level, with exports weaker<\/strong><\/p>\n

The monthly turnover chart for German sawmills, planing mills and wood-preservation plants shows a sharp decline between July and August 2026. Reading the chart approximately, total sales fell from almost \u20ac590 million to around \u20ac485 million. Domestic turnover declined to roughly \u20ac330 million and foreign turnover to about \u20ac155 million.<\/p>\n

The annual comparison is less severe. Total turnover in August 2025 was approximately \u20ac480 million, close to the August 2026 level. Domestic sales were higher this year, while foreign sales were lower.<\/p>\n

The series therefore points to a change in the composition of revenue as well as a monthly slowdown. Domestic customers accounted for roughly two-thirds of August turnover, leaving overseas markets responsible for about one-third. Export weakness remains significant even when total nominal sales hold near the previous year\u2019s level.<\/p>\n

Turnover alone cannot establish whether mills are selling more timber or earning better margins. Higher selling prices can support revenue while physical output falls, and elevated log, energy and labour costs can absorb much of the income.<\/p>\n

US price weakness threatens export returns<\/strong><\/p>\n

The North American market adds another source of pressure. US lumber futures traded below the equivalent of approximately US$216\/m\u00b3 in early November, following a decline of more than 25% from late July, according to the market report published by Agrarheute on November 10.<\/p>\n

For German producers, the transmission runs through export orders and achievable selling prices. Weaker US lumber prices reduce the room available to cover European production costs, inland transport and ocean freight. They can also make North America a less attractive destination for surplus European output.<\/p>\n

Expectations of further reductions in US duties on Canadian softwood have added uncertainty. If Canadian suppliers gain more favourable access, European exporters could face stronger competition for American orders. That remains a trade-policy risk; expectations of tariff relief should not be treated as an enacted removal of duties.<\/p>\n

US futures price standardised North American sawn lumber. German sawlog contracts respond to local availability, species, quality, transport costs and mill purchasing requirements. The two markets are connected through the economics of sawn timber production and exports, rather than through a direct price formula.<\/p>\n

Lower log costs offer limited relief<\/strong><\/p>\n

The German Sawmill and Timber Industry Association, DeSH, warned in June that construction timber production could fall by a further 9\u201310% in 2026 if operating conditions remained unchanged. The warning followed production falling to its lowest level in a decade in 2025 and was based on surveys within the association.<\/p>\n

DeSH identified weak building demand, expensive raw materials and energy, and restrictions on international trade as the main pressures on producers. Improved log availability had not been sufficient to restore production growth.<\/p>\n

The autumn reductions in log prices could help mills purchasing fresh supplies, but the benefit depends on what happens to sawn timber prices and sales volumes. A mill paying less for logs can still lose margin if export prices fall faster or fewer orders leave its equipment and workforce underused.<\/p>\n

For forest owners, the immediate effect is more selective purchasing and greater importance attached to agreed delivery schedules. For sawmills, the decisive constraint remains the ability to sell the resulting timber at prices that cover production costs. Until that improves, lower log prices may accompany further reductions in cutting rather than a recovery in output.<\/p>\n

\n
<\/div>\n
GWMI | TIMBER MARKETS<\/div>\n

German softwood log prices by area<\/h2>\n

Autumn 2026 \u00b7 Prices in \u20ac\/m\u00b3<\/p>\n

\n\n\n\n\n\n\n\n\n
Area<\/th>\nLog assortment<\/th>\n\u20ac\/m\u00b3<\/th>\nQuotation \/ contract period<\/th>\n<\/tr>\n<\/thead>\n
Southern Germany<\/th>\nFresh spruce, fixed lengths
\nB\/C, diameter class 2b+<\/span><\/td>\n		112\u2013115<\/td>\nLate October 2026
\nValid through December 2026<\/span><\/td>\n<\/tr>\n
Spruce
\nDiameter class 2b+<\/span><\/td>\n		Around<\/span>
\n120<\/span><\/td>\n		October 2026\u2013January 2027
\nContract period<\/span><\/td>\n<\/tr>\n
Pine
\nDiameter class 2b+<\/span><\/td>\n		Around<\/span>
\n85<\/span><\/td>\n<\/tr>\n
Southwestern Germany<\/th>\nSpruce benchmark
\nDiameter class 2b<\/span><\/td>\n		125\u2013128<\/td>\n24 September 2026
\nQuotation date<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Selected local quotations. Grades, delivery terms and contract periods differ. Prices per solid m\u00b3.<\/p>\n

GLOBAL WOOD MARKETS INFO<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Germany\u2019s softwood log market is losing some of the price strength that persisted through much of 2026. Spruce prices have fallen in several areas, sawmills are limiting purchases, and additional supplies of beetle-damaged and drought-affected timber are reaching the market.<\/p>","protected":false},"author":1,"featured_media":100607,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\nGerman log prices begin to fall as sawmills cut purchases and demand stays weak - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/german-log-prices-begin-to-fall-as-sawmills-cut-purchases-and-demand-stays-weak\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"German log prices begin to fall as sawmills cut purchases and demand stays weak - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Germany\u2019s softwood log market is losing some of the price strength that persisted through much of 2026. 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