Federal states of Brandenburg, Hesse, Mecklenburg-Western Pomerania, Lower Saxony, North-Rhine Westphalia, Rhineland-Palatinate, Saxony, Saxony-Anhalt, Thuringia. Source: Destatis, market reports from state forestry companies’ archives (04/2022 to 03/2025); Holzkurier market research © Timber-Online.net
Purchases made by sawmills in the federal states of North Rhine-Westphalia, Hesse, and parts of Lower Saxony, which were “de-spruced” following widespread bark beetle infestation, have had an impact beyond their respective borders. For local purchases, sawmills in North Rhine-Westphalia and Hesse are offering up to €130/m³ for long spruce logs and cut logs ex forest road (L 2b+, B/C). For longer delivery distances in the rather wide purchasing areas, prices are still as high as €120/m³. Accordingly, a price level of around €115/m³ can be observed for new contracts valid until the end of the second quarter, or in some places even until the end of September, in almost the entire northern half of Germany. Lower spruce log prices of around €110/m³ can only be found in preliminary contracts, which were concluded at the beginning of the year and are often valid until the end of April or mid-year. Outside of the wider purchasing areas, for example in northeastern Germany, prices of €100/m³ are still reported. This level also applies to annual contracts concluded for the current calendar year. In the west, where purchasing organizations of Belgian sawmills operate as well, a price level of €115 to €120/m³ has already been reached for six-month and full-year contracts agreed at the beginning of the year.
In southern Germany, strength class discounts had already been reduced last year. In the northern half of the country, however, they remain at €10/m³.
Larch and Douglas fir remain in demand
Due to the scarcity of spruce logs in many areas, more and more sawmills have started cutting larch and Douglas fir logs in recent years and continued to do so at an increasing rate in the first months of this year. Compared to spruce, there are premiums of €10 to €15/m³, so that prices are partly exceeding €140/m³ ex forest road in some areas. Only in regions with a higher proportion of lower-quality larch logs are selling prices €10/m³ lower than those for spruce logs.
Rising prices for standard-length pine logs
At the end of the first quarter, forestry companies and marketing organizations negotiated follow-up contracts for pine log wood. The upward price trend of previous quarters continues. However, the €90/m³ demanded by some suppliers are not met. Relatively uniform prices for both long logs and cut logs (LAS) L2b+, B/C, of €80 to €85/m³ ex forest road are reported across the entire northern half of Germany. In Lower Saxony and Hesse, deals involving prices between €83 and €87/m³ have also been reported from both privately and state-owned forests. In North Rhine-Westphalia, €90 to €95/m³ are charged.
In contrast to the relatively uniform prices for the main L 2b grade, there are significant regional differences when it comes to strength class discounts. In some cases, only €5/m³ are deducted.
High demand for log wood at pallet factories in the west
Sawmills specializing in the production of lumber for pallets have a vested interest in increased log deliveries. This is especially true for companies in the northwest of the country. While pallet sawmills in the east report a weak order situation due to the economic situation and thus a rather low demand for log wood in negotiations, a different picture emerges for companies further west. Particularly in regions close to the Netherlands, demand for 2.4-m-long logs has been high for several weeks. In those regions, there is increasing activity by traders purchasing log wood for Dutch companies. This noticeable gap in demand between the west and east is also reflected in the preliminary contracts, most of which are concluded for the second quarter only. Prices for pallet lumber, which in most cases includes all types of softwood, are partly approaching the €50/m³-mark ex forest road in the west. Meanwhile, they are often well below €40/m³ in the east.
Sufficient log supply
The log supply of most sawmills in the northern half of Germany is sufficient for current production, with long-distance procurement often contributing to this. However, a shortage is still expected for the upcoming summer months. The extent of it will also depend on the development of cutting volumes.
Especially in the case of large sawmills, for which lumber exports to the US play an important role, there is uncertainty about future cutting volumes due to the erratic decisions of the US government when it comes to introducing import tariffs.
