The first months of 2026 in the European wood and lumber market are being shaped by weak construction demand, high raw material costs, fluctuations in export markets and pressure on production. While Germany’s hardwood lumber exports declined slightly in the first quarter of the year, spruce log prices increased. In Austria, the rise in sawdust and wood chip price indices for sawmill by-products also drew attention.
The overall market picture reveals a course that differs by product group. While exports contracted in some categories, strong increases were recorded in certain industrial wood groups. This situation shows that demand in the European wood sector is not moving uniformly, with different dynamics coming to the fore on a product basis.
Hardwood Lumber Exports Declined in Germany
Germany’s hardwood lumber exports fell by 5 percent in the January to March 2026 period compared to the same period of the previous year. Shipments to China, the most important buyer for Germany in this product group, declined by 19 percent.
By contrast, limited increases were recorded in the US and Polish markets. Exports to the US rose by 2 percent, while exports to Poland increased by 5 percent. This picture shows that weakness in the Chinese market is creating significant pressure on Germany’s hardwood lumber exports, while demand in some Western and Central European markets remains more resilient.
China-Driven Pressure Continues in Beech Lumber
A similar trend was observed in beech lumber exports. Germany’s beech lumber exports in the first three months of 2026 decreased by 4 percent compared to the same period of the previous year. Although China remained by far the largest buyer in this product group, shipments to the country fell by 21 percent.
On the other hand, the increase in shipments to the US shows that market diversification is gaining importance in German beech lumber exports. Weakening purchasing appetite in China is leading European producers to evaluate alternative markets more closely.
Oak Log Exports Maintained Balance
Germany’s oak roundwood exports remained generally stable in the first quarter of the year. Export volume in the January to March 2026 period stayed close to the level recorded in the same period of the previous year.
Oak log shipments to China, the most important buyer country, reached 36,000 cubic meters. This amount indicates a 7 percent decline compared to the first quarter of 2025. Despite this, the flat course in total exports suggests that demand in other markets partially offset the China-driven decline.
Strong Increase in Beech Industrial Wood
The most notable increase among hardwood products was recorded in beech industrial wood. Germany increased its exports of small-diameter beech industrial wood by 73 percent in the first three months of 2026 compared to the same period of the previous year.
Purchases by Austria, the most important buyer in this product group, rose by 64 percent. This increase points to strengthening demand for small-diameter wood in industrial use, fiber-based production, energy and downstream industry applications.
Spruce Log Prices Increased, While Hardwood Logs Declined
Producer prices for wood products from state forests in Germany followed a mixed course in April. Spruce log price indices increased, while hardwood logs declined.
This picture shows that raw material costs, especially on the softwood side, continue to put pressure on producers in Germany. Despite weakness in the construction sector, the rise in spruce log prices reveals that supply conditions and raw material access remain among the critical issues.
On the other hand, signals of stability were seen in the softwood log market in May, particularly for spruce. According to sector reports, the vast majority of participants in the reporting network stated that demand for spruce logs remained stable. In pine, seasonal demand decline came to the fore.
Sawmill By-Products Gained Value in Austria
In Austria, both wood chip and sawdust price indices increased significantly in April compared to March. This rise in sawmill by-products represents an important signal for energy, panel production, pellets, biomass and other fiber-based applications.
The increase in by-product prices is important not only in terms of side revenues for sawmills, but also in terms of the cost structure of industries using these raw materials. The rise in sawdust and wood chip prices stands out as a factor that could affect the cost balance, particularly in biomass energy and wood-based product manufacturing.
Weakness in the Construction Sector Limits Wood Demand
One of the main reasons for the pressure on the German wood market is the continued weakness in the construction sector. The decline in housing production directly affects demand for lumber, engineered wood products, panels and building materials.
The fact that the number of completed homes in Germany fell to its lowest level since 2012 in 2025 clearly revealed the fragility on the demand side of the sector. Although some recovery signals have been observed in building permits, this development is not expected to turn into a strong production increase in the short term.
For this reason, Germany’s sawmill and wood industry is caught between high costs and weak demand. While rising raw material prices increase producers’ costs, stagnation in end markets limits sales volume and profitability.
Segezha’s Revenues Declined in Russia
Pressure in the European market is not limited to Germany. Russian forest products group Segezha also announced weak financial results for the first quarter of 2026. The company’s revenues fell by 29 percent to 17.4 billion rubles, while operating income before depreciation and amortization, OIBDA, decreased by 90 percent to 208 million rubles.
These results show that pressures related to exports, logistics, financing and market access also continue in Russia’s forest products sector. The sharp decline at Segezha is considered one of the important indicators showing that profitability conditions in the wood and lumber market have weakened on a regional scale.
Market Balance Differs by Product
Looking at the overall picture, it is becoming difficult to speak of a one-directional movement in the European wood market. While hardwood lumber and beech lumber exports declined in Germany, a strong increase was recorded in beech industrial wood. Spruce log prices increased, while some hardwood logs declined. In Austria, sawmill by-products gained value.
This differentiation increases the importance of developing product-based strategies for sector players. Raw material supply, export market selection, product diversity, cost management and the evaluation of by-products will be among the main factors determining the competitiveness of the European wood industry in 2026.
As long as the construction market in Germany remains weak, a lasting recovery in the lumber and panel industry is expected to remain limited. On the other hand, energy, biomass, industrial use and alternative export markets could create new balance points for the sector.