German sawmills have significantly reduced roundwood prices after rebuilding log inventories and facing weaker demand, bringing an end to the record price rally seen earlier this year. Forest owners are also reporting growing roadside timber stocks as log removals slow and transport costs rise.<\/p>\n
Overall, prices for newly signed sawlog contracts fell markedly in May, reflecting a market that has shifted from supply shortages to more balanced inventories. Industry participants also said export markets were disrupted by the recent conflict between Israel and Iran, which temporarily altered trade flows and reduced export demand.<\/p>\n
Spruce and pine prices fall by up to \u20ac10\/m\u00b3<\/strong><\/p>\n Most forest owners' associations reported significantly lower prices for spruce, Germany's benchmark sawlog species, for the second quarter of 2026 compared with the first quarter.<\/p>\n Prices for spruce sawlogs (strength class 2a, BC quality) generally ranged between \u20ac123 and \u20ac125 per cubic metre, representing a decline of approximately \u20ac7 to \u20ac10\/m\u00b3 from the record highs above \u20ac130\/m\u00b3 reached in March.<\/p>\n Pine prices have also weakened considerably. Forest owners report that sales are no longer progressing as smoothly as earlier this year, with some sawmills cutting pine prices by up to \u20ac10\/m\u00b3 or more. Overall, newly concluded sawlog contracts in May showed a clear downward trend.<\/p>\n The main reason behind the correction is that sawmills are once again well supplied with logs. Demand has also softened against the backdrop of the difficult economic environment and the larger harvesting volumes encouraged by previously high timber prices.<\/p>\n The sharp increase in timber prices through March was driven primarily by structural shortages rather than exceptionally strong consumption. Limited volumes of damaged timber, depleted mill inventories and precautionary purchasing by sawmills all contributed to the record price levels.<\/p>\n Sawmills rebuild inventories<\/strong><\/p>\n Most German sawmills entered the second quarter with substantially improved log inventories. As procurement needs eased, timber deliveries from forest owners slowed, leading to increasing roadside log stocks across several regions.<\/p>\n At the same time, transport and logistics costs have continued to rise while freight capacity remains limited. These factors have reduced the willingness of mills to purchase additional timber and have slowed removals from forests.<\/p>\n Growing timber inventories at forest sites also raise concerns over possible quality losses if harvested logs remain in storage for extended periods.<\/p>\n Against this backdrop, forest owners' associations and timber traders believe further reductions in spruce and pine prices remain possible over the coming weeks.<\/p>\n Hardwood market remains firmer<\/strong><\/p>\n The conclusion of the hardwood harvesting season showed a different trend.<\/p>\n Because harvesting activity focused heavily on softwood during recent months, lower hardwood volumes reached the market. As a result, prices for oak and beech continued to rise through April despite the weakness developing in the softwood sector.<\/p>\n Conflict in the Middle East disrupted exports<\/strong><\/p>\n Forest owners, timber exporters and sawmills also report increased uncertainty following the recent conflict between Israel and Iran.<\/p>\n According to market participants, significant volumes of softwood lumber originally destined for Middle Eastern markets could not be shipped to their planned destinations. These volumes were redirected to alternative markets, increasing competition and disrupting international trade flows.<\/p>\n Although the full impact on export prices has yet to become clear, exporters have become noticeably more cautious in their purchasing behaviour, influencing roundwood prices across Germany and other European markets.<\/p>\n Export-oriented sawmills may therefore further reduce roundwood purchases in the coming weeks while working through existing inventories. Larger log stockpiles at mills could lead to procurement quotas and lower timber transport volumes.<\/p>\n Forest owners advised to slow harvesting<\/strong><\/p>\n Given the current market situation, many forest owners are being advised to clear existing roadside timber stocks before carrying out additional harvesting.<\/p>\n Several market participants recommend postponing new harvesting operations until there is greater clarity over market developments during the remainder of 2026.<\/p>\n However, they also stress that the market could change direction quickly. If supplies of damaged timber remain limited, another shortage of roundwood could emerge as early as July. At the same time, export markets may gradually stabilise, creating additional demand and supporting prices later in the year.<\/p>","protected":false},"excerpt":{"rendered":" German sawmills have significantly reduced roundwood prices after rebuilding log inventories and facing weaker demand, bringing an end to the record price rally seen earlier this year. Forest owners are also reporting growing roadside timber stocks as log removals slow … Continue reading