Austria’s timber market moved into March 2026 against a backdrop of continued economic weakness, with both industry and construction affected by weak foreign demand, lower investment activity and rising energy costs. Market sentiment has also been further weighed down by the war in Iran.
Softwood sawlog demand eases
In the coniferous sawlog segment, Austrian sawmills are currently described as being well stocked. Demand in northern Austria is still broadly at normal levels, but weaker conditions are already being reported in the south and west of the country.
Transport remains another complicating factor. In addition to occasional shortages in freight capacity, roadblocks, quotas and supply restrictions are creating delays in timber movement. Even so, the resulting stockpiles in forest areas are expected to be cleared over the coming weeks. Prices are largely stable, although in some cases there is slight downward pressure. For pine, the rise in temperatures is increasing the urgency of timely removal in order to prevent quality deterioration. Larch, meanwhile, continues to benefit from lively demand and stable price levels.
Hardwoods see firmer buyer interest
A harvesting focus on softwood, driven by pricing, has reduced hardwood supply late in the season. Buyers are responding with stronger interest, especially for oak and ash, where demand remains brisk. Other hardwood species are also finding targeted demand, particularly in higher-quality grades.
Industrial roundwood market shows mixed movement
Stockpiles of softwood industrial roundwood held by the paper, pulp and panel industries have fallen significantly. At the same time, lower availability and the partial redirection of freight capacity toward sawlog transport have gradually increased demand.
Where transport is available, deliveries are being removed quickly and taken in without delay. Prices for pulpwood and fiberwood have edged upward in some regions, while the coniferous panel wood category has seen declines in certain areas. Demand for hardwood roundwood, however, remains subdued.
Energy wood conditions differ by region
Austria’s energy wood market continues to show strong regional variation. In Upper Austria, the market remains tight. In Lower Austria, stronger demand and lower inventories are increasing the need for higher-quality wood, with this trend also feeding into prices. In other parts of the country, seasonal weakness in demand is becoming more visible. Overall, prices are described as stable.
Forest hygiene gains urgency with warmer weather
With temperatures rising, forest hygiene is becoming a priority before bark beetles begin their swarming flight. This includes not only clearing snow damage caused by wet snow, but also processing and removing all coniferous wood suitable for breeding from the forest as quickly as possible.
The prices referenced in the report apply to transactions carried out between February and early March 2026 and are quoted as net prices, excluding sales tax. For timber sold to businesses, a 13% rate applies to all product categories under the flat-rate VAT scheme. Under standard taxation, energy wood and firewood are subject to 13%, while roundwood is taxed at 20%. Deviations and changes remain possible.
Source: LK Austria