German sawmills are increasingly coordinating their purchasing strategies as they seek relief from record-high softwood log prices that many believe have become disconnected from developments in lumber markets.<\/p>\n
The discussion comes at a crucial point in the contracting season. In northern Germany, annual supply agreements negotiated earlier this year are approaching their end, while a significant share of contracted volumes has already been delivered. This has forced both forest owners and processors back to the negotiating table sooner than expected.<\/p>\n
According to market participants, the main concern for sawmills is not the absolute level of lumber prices but the speed at which log costs have risen. Over the past year, log prices have increased much faster than prices for finished lumber products. While demand for construction lumber has improved compared with the weak market conditions of 2023 and parts of 2024, the recovery has been insufficient to offset higher raw material costs.<\/p>\n
Many mills report that lumber prices remain constrained by competition in export markets and subdued construction activity across Europe. As a result, margins have come under increasing pressure despite stable production levels.<\/p>\n
Germany's Federal Statistical Office reports that spruce and pine log prices have reached record levels. In Franconia, many forest owners are taking advantage of the market. Timber merchant Thomas G\u00f6ttel, who manages forests near Buch am Wald in Bavaria, recently told BR24 that he has harvested roughly twice as much timber as usual this year. \"The prices are phenomenal,\" he said.<\/p>\n
His reaction reflects a broader trend across Germany. The market has changed dramatically since the bark beetle years, when huge volumes of damaged timber flooded Central European markets and pushed prices lower. Those surplus volumes have largely disappeared, while harvesting activity has not expanded significantly despite stronger demand. Log availability therefore remains tight in many regions.<\/p>\n
Competition among harvesting contractors and timber buyers has also supported prices. In many areas, forest owners are securing attractive returns through standing timber sales before harvesting even begins.<\/p>\n
For processors, the market is becoming increasingly difficult. In addition to higher log prices, sawmills continue to face elevated energy, transport and labour costs. Johannes Meyer, timber buyer at Rettenmeier GmbH in Wilburgstetten, notes that transport companies are passing higher diesel and operating expenses directly on to sawmills.<\/p>\n
Several industry sources told Global Wood Markets Info that German sawmills are approaching a point where further log price increases can no longer be absorbed. The concern is especially acute among producers of commodity construction lumber, whose products compete directly with supplies from Scandinavia, Eastern Europe and overseas. These producers have limited ability to pass on higher raw material costs because prices are largely determined by international market conditions.<\/p>\n
Forestry scientist Hubert R\u00f6der of the Weihenstephan-Triesdorf University of Applied Sciences argues that the current market presents an opportunity for forest owners to reinvest higher revenues into forest management. He believes investments in forest conversion, species diversity and climate resilience will be essential if forests are to withstand future bark beetle outbreaks and changing climatic conditions.<\/p>\n
Although Bavaria has largely avoided the severe bark beetle infestations seen elsewhere in Germany in recent years, extensive damage in parts of North Rhine-Westphalia, Lower Saxony and Saxony-Anhalt demonstrates how quickly conditions can change. R\u00f6der warns that future outbreaks could spread southward if weather conditions become favourable again.<\/p>\n
Some industry representatives argue that a stronger construction sector would provide a more sustainable balance across the value chain. Oskar von Goetz of Rettenmeier points to weak construction activity in key markets, including North America, where high mortgage and construction costs continue to weigh on housing demand. Similar conditions persist across parts of Europe.<\/p>\n
Wood remains one of the most climate-friendly construction materials, and many industry representatives believe stronger political support for timber construction could stimulate demand and improve market conditions for processors.<\/p>\n
For now, Germany's softwood market remains divided. Forest owners see a tight supply situation that supports current prices, while sawmills argue that raw material costs have moved beyond what downstream markets can sustain. Until construction activity recovers more convincingly, the gap between log prices and lumber prices is likely to remain a central issue for the sector.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98928,"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-98927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n