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
In some places, the new preliminary contracts in Rhineland-Palatinate include prices of just under €130/m³ ex forest road, which is around €10/m³ more compared to the expired contracts. Thus, the price level in Rhineland-Palatinate is similar to that in North Rhine-Westphalia and Hesse. In North Rhine-Westphalia, a price of €130/m³ for L2b B/C-grade cut and long spruce logs will largely be maintained. In Lower Saxony, prices now range from €115 to €125/m³, depending on the region. The price reductions demanded by some large sawmills in central and northeastern Germany were successfully fended off.
Forestry companies want €10/m³ more
In some federal states, negotiations are still ongoing. In those cases, however, suppliers are demanding surcharges of €10/m³. This would result in a price level of €110 to €120/m³ ex forest road, particularly in eastern German states. In the northeast, a significantly lower price level of around €100/m³ is recorded due to annual contracts valid until the end of the year.
Pine remains in demand
In a good part of the quarterly and half-yearly contracts for cut and long pine logs, which were concluded during June, the price level from the second quarter, i.e. of €80/m³ to €86/m³, remains valid. However, it is striking that the price premiums of €2/m³ and top prices of up to €90/m³ announced in May for additional volumes were now included in the quarterly contracts.
Beyond the traditional northern and eastern German pine growing areas, forestry companies in the west have also agreed to harvest pine during the summer months. This is being done at the request of local sawmills. Price negotiations have not yet been concluded in many cases, but it is already apparent that sawmills, which were previously focused on spruce log wood and are now increasingly cutting pine logs as well, are willing to pay higher prices than traditional buyers of pine.
Preliminary contracts with Polish sawmills
As for 2.4-m-long pallet wood, there have been few changes to the already high prices. In the purchasing areas located close to the Benelux countries, prices of up to €50/m³ ex forest road are still being reported. The number of preliminary contracts with such high prices has increased. Similar to the raised prices for pine sawlogs in May, the unplanned price increases are now part of the preliminary contracts valid for the coming months. For forestry companies in northern and eastern Germany, preliminary agreements with a Polish pallet sawmill are becoming increasingly important. The sawmill is increasingly expanding its log purchasing radius into eastern Germany, which results in higher prices for 2.4-m-long softwood logs there. With prices ranging from €40/m³ to €43/m³ ex forest road, the €38/m³ which were still paid in some cases in April are now a thing of the past in eastern Germany as well.
Low forest stocks
Overall, the supply of softwood logs has declined in recent weeks. In some federal states, supply volumes are falling short of expectations due to the lack of beetle-damaged wood. As a result, forestry companies cannot offer the contractually agreed volumes. However, following the heatwave at the end of June, the supply of beetle-damaged wood is expected to increase. Nevertheless, some sawmills in the northern half of the country still plan to reduce cutting in the coming weeks, mainly via extended vacation periods. Sawmill representatives give the slowing of some lumber markets as the main reason for this step.
