Germany’s timber market has entered 2026 with unusually high price levels, driven by a tightening supply of raw timber that is increasingly struggling to match sawmills’ needs. The German Timber Industry Association (HDH) says the availability of roundwood has recently deteriorated rapidly and has also warned about potential impacts of the Restoration Ordinance (WVO) on sustainable forest management, particularly regarding the so-called prohibition on degradation.
Supply constraints hit spruce and pine
The supply situation remains especially tight for spruce and pine roundwood. In many regions, available volumes are not sufficient to fully cover sawmills’ demand, pushing prices higher again during the first quarter of 2026. Sawmills are attempting to leverage the elevated price environment to encourage forest owners to increase deliveries, while many processors are concerned that stocks could end up too low once the harvesting season concludes.
Harvesting conditions are currently described as favorable, supporting continued activity. At the same time, short supply is accelerating delivery flows, with shipments moving quickly as contracts often run through the end of April.
Prices climb, discounts apply for beetle-damaged wood
Market participants report that for spruce, fixed-length B/C grade and B grade long timber in the 2b+ thickness class is being paid at around €130–€133 per cubic meter, with some cases reaching €135. For 2b+ in B/C grades, prices are currently around €96–€100 per cubic meter. Beetle-damaged timber is typically being priced with a €20 per cubic meter discount from the BC level.
Industrial wood and firewood demand also rising
Demand for industrial wood has strengthened as well. Despite higher timber production, shipments of industrial wood have reportedly been postponed in favor of prioritizing roundwood deliveries to sawmills. In parallel, a cold winter has boosted demand for firewood, tightening conditions further in energy wood markets.
In some cases, additional premiums are being offered for fresh industrial wood during the first quarter. Forest owner associations are therefore recommending selective harvesting of industrial wood assortments. The cold and snowy conditions have also accelerated inventory reductions, while the heating season has pushed energy wood consumption higher. Demand for higher-quality firewood is rising as buyers seek to replenish stocks after intensive winter usage.
Source: agrarheute.com