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The prices of wood in Germany have experienced a significant decline over the past few weeks. Many forest owners are reporting that normal utilization of wood is becoming increasingly difficult. This situation has been exacerbated by storm-damaged and beetle-infested wood flooding the market. Forest owners are now offering mixed prices for wood affected by beetles, damage, or the specific price for spruce wood impacted by beetles.<\/span><\/p>\n During July and August, lumber prices in Germany have taken a substantial hit. In response to this sharp decline, most sawmills are attempting to mitigate the impact by reducing the quantities they offer for sale. As a result, the demand for softwood logs has dropped significantly.<\/p>\n Simultaneously, sawmills are expressing concerns about the lack of demand across various wood product categories. This weak demand is evident not only in Germany but also across Europe and overseas. The primary reason behind this trend is the dwindling demand for construction wood, further compounded by an escalating construction crisis.<\/p>\n Contributing to this situation are rising interest rates and an overarching economic crisis that has led to a drastic increase in business insolvencies. The combined effect of these factors is having a noticeable impact on wood prices in Germany.<\/p>\n Mixed prices for spruce wood, with an emphasis on wood infested by beetles, have become the norm. This has prompted many forest owners to substantially reduce their fresh wood production. In some regions, fresh logging has even been completely halted. Conversely, many sawmills have prolonged their usual summer maintenance shutdowns.<\/p>\n Reports indicate that the paper, pulp, and panel industries in Germany are generally well-stocked. Consequently, the demand for industrial softwood logs has waned, causing prices to decrease, as confirmed by forest owners.<\/p>\n Normal wood utilization has become increasingly difficult due to these factors. The coming weeks are expected to see the continuation of the lumber sales crisis in Germany. Should unexpected instances of storm damage or beetle infestations arise, the sales predicament could potentially worsen.<\/p>\n In light of these challenges, many associations representing forest owners in Germany are advising against conducting normal logging operations for the time being. However, the sharp decline in lumber prices for sawlogs is likely to naturally curtail normal logging activities.<\/p>\n A potential silver lining might emerge from the reduced production of sawmill byproducts, due to the industry's cutback in processing volumes. This reduction could eventually alleviate market pressures and lead to a degree of stabilization in prices for industrial and energy wood.<\/p>\n Lumber prices, particularly those concerning spruce wood, have experienced a significant and rapid decline in Germany. This has prompted a cautious approach to sales contracts, with some existing agreements being terminated from the buyer's side. As a result, new contracts are scarce and are generally being offered at substantially reduced prices, but only for short-term periods.<\/p>\n In this context, only a few forest owners in Germany are reporting prices for high-quality BC-grade spruce wood with a mid-diameter of 20 cm, ranging from 85 to 90 euros per cubic meter (m\u00b3). Prices for beetle-infested wood in grade 2b+ are in the range of 60 to 64 euros\/m\u00b3 net.<\/p>\n However, many sawmills in Germany are now offering significantly lower prices, ranging from 74 to 79 euros\/m\u00b3 for BC-quality spruce wood, and as low as 53 to 56 euros\/m\u00b3 for beetle-infested wood.<\/p>\n Due to the considerable drop in spruce wood prices, the market for pine wood has virtually ground to a halt in Germany. Reported prices for BC-quality pine wood are now ranging from 50 to 54 EUR\/m\u00b3, while prices for D-quality are hovering between 49 and 53 EUR\/m\u00b3.<\/p>","protected":false},"excerpt":{"rendered":" The prices of wood in Germany have experienced a significant decline over the past few weeks. Many forest owners are reporting that normal utilization of wood is becoming increasingly difficult. This situation has been exacerbated by storm-damaged and beetle-infested wood … Continue reading