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<\/span>Wood prices in Europe are rising again, and signs of a tightening supply of processed wood are beginning to appear after several years of abundant raw material. Prices for softwood lumber in particular have increased sharply, with some products rising by as much as 15\u201318% between January 2025 and January 2026, according to data compiled by FederlegnoArredo and Fondazione Edison.<\/p>\n The increases are already affecting downstream industries in the wood value chain, especially packaging and wood panels, both of which are essential inputs for manufacturing, furniture production and construction.<\/p>\n Supply tightening in central Europe<\/strong><\/p>\n The price pressures are largely linked to reduced log harvesting in Germany and Austria, two of Italy\u2019s main wood suppliers. Italy imports roughly 80% of the wood used by its domestic industry, meaning developments in neighbouring forestry sectors quickly feed through to Italian prices.<\/p>\n According to Paolo Fantoni, president of the Italian panel producers\u2019 association Assopannelli, the trend began about a year ago but intensified during the last four to five months.<\/p>\n Forestry companies in central Europe cut harvesting levels after a period of unusually high supply. Following the 2018 storm Vaia, which felled millions of trees across northern Italy and parts of central Europe, and subsequent large-scale logging to remove trees damaged by bark beetle infestations, the market experienced several years of abundant timber. The resulting oversupply pushed prices down, making harvesting less profitable and leading many forest owners to reduce logging activity.<\/p>\n As supply tightened, prices for by-products such as sawdust, wood chips and boards also increased, putting additional pressure on manufacturers of panels and packaging materials.<\/p>\n Price increases spreading along the value chain<\/strong><\/p>\n Data from the FederlegnoArredo\u2013Fondazione Edison index show the strongest increases in softwood lumber, with market information from Germany confirming that prices began climbing rapidly from October 2025, rising by roughly 15% in a few months.<\/p>\n Further along the value chain, the increases have also affected OSB panels and wood pellets, particularly during the winter heating season when demand is strongest. Smaller price increases have been recorded for particleboard and MDF, segments in which Italian manufacturers hold a stronger position.<\/p>\n However, manufacturers say the current market environment makes it difficult to pass rising costs on to customers.<\/p>\n Fantoni noted that demand for finished products remains relatively weak, limiting producers\u2019 ability to raise prices. At the same time, other costs are increasing. In particular, urea, a gas-derived chemical used in adhesives for wood panels, has become more expensive since January following the introduction of the EU\u2019s Carbon Border Adjustment Mechanism (CBAM). Higher energy prices linked to geopolitical tensions are adding further pressure to production costs.<\/p>\n Packaging sector under pressure<\/strong><\/p>\n The price increases are particularly visible in the packaging industry, where wooden pallets and crates are widely used in industrial logistics.<\/p>\n Andrea Gava, president of Assoimballaggi, said packaging prices have already risen 15\u201318% compared with a year ago, with further increases possible in the coming months.<\/p>\n \u201cOur products are strategic for logistics and manufacturing, but they have limited added value,\u201d Gava said. \u201cThis means the cost of raw materials has a very direct impact on prices.\u201d<\/p>\n At the same time, demand from customers remains stable rather than strong, and buyers are seeking price reductions rather than accepting increases, putting manufacturers in a difficult position.<\/p>\n Risk of shortages<\/strong><\/p>\n Another concern for the industry is the recent increase in log prices in Germany and Austria. Some sawmills have accepted these higher costs to secure raw material supplies, but are struggling to pass them on to customers.<\/p>\n As a result, some mills have begun reducing production volumes, cutting shifts or limiting working days.<\/p>\n If this trend continues, the market could face not only higher prices but also material shortages, raising the possibility of a situation similar to the 2021\u20132022 period following the pandemic, when timber markets experienced severe supply disruptions\u2014although this time the market environment is markedly different, with weaker demand.<\/p>","protected":false},"excerpt":{"rendered":" Wood prices in Europe are rising again, and signs of a tightening supply of processed wood are beginning to appear after several years of abundant raw material. Prices for softwood lumber in particular have increased sharply, with some products rising … Continue reading