Strong increase
In the fourth quarter of 2024, the prices of some products were hesitantly raised. At the start of this year, several other product ranges followed suit, practically across the entire DACH region. One example is raw wood for solid structural timber, the price of which increased by up to €25/m³ to around €280/m³ at the end of January.
The increases were implemented without much of any resistance. Despite having managed to raise prices for main grades so much, producers are not euphoric. Demand is said to be okay in terms of volume, however, results will only improve substantially if and when prices can be further increased. This requires further growth in incoming orders in March and April, i.e. when the construction season begins. “Last year, we were off to a similarly good start – but by March, the party was already over,” one market participant recalls who does not want to experience déjà vu.
Volumes were okay, but prices...
“2024 is a good year in terms of volumes, but not in terms of price” best describes the CLT market. After months of despair, “the May miracle” happened: Within just 14 days, the order books filled up, and they are still quite full in the first quarter of 2025.
In the fourth quarter of 2024, CLT prices were raised by around €40/m³. Nevertheless, manufacturers are still at least one more price increase away from achieving at least €500/m³ (mixed price non-visible quality). It will probably take until April for this to happen.
CLT therefore remains a “problem child”. It is the only glued timber product to be sold at prices that are below pre-COVID levels.
Main lumber grades and sideboards: two worlds
Prices for byproducts and sideboards are usually raised several weeks after those of main lumber grades. This year was no exception. In January 2025, fresh 17-mm machined sideboards were sold for €199 to €215/m³ including delivery to Milan. This corresponds to a month-on-month increase of around €4/m³. The first signs of stronger price increases can be seen in the Benelux states.
Large timber companies have announced price increases for sideboards in the coming weeks. It will take two “rounds” to raise the price for byproducts by €20/m³. Since 80% of wood products are used in the construction sector, the situation there is of crucial importance. Sentiment at the 2025 Bau trade fair in Munich was one indicator. To sum up, it was surprisingly positive. The large Central European timber builders are very busy, as are many of the smaller timber construction companies. In Austria, the strong winter season gives hope for more orders for trade and timber construction.
Glulam heading towards €600?
In Germany, the price for dried, visible-quality lamellas for glulam has reached almost €300/m³, and offers were still fluctuating around this mark in January. As for Germany and Italy, the Holzkurier identified a price range of €530 to €560/m³ for visible-quality glulam. In the two previous years, the new year started at levels that were up to €50/m³ lower. At +€20 to +€25/m³, the increases implemented in January were quite substantial. A price of €600/m³, as it was most recently recorded in June 2022, is not impossible. The price level of non-visible-quality glulam is only around €20 to €25/m³ lower. The main reason for this relatively narrow gap is the shortage of raw wood, which results in a much lower production output of non-visible-quality goods.
This year, the large export-oriented sawmills are placing great hope in the development of US prices. In its January price trend for European goods, the Holzkurier identified a range of around €351 to €371/m³ on the US East Coast. That is around €25/m³ more compared to January 2024.
The US is currently affected by bad weather and the whims of the new president. For the construction industry, the motto is: “Let the dust settle.” The US can only satisfy around two thirds of its demand with domestic production. The announced tariffs would therefore have a massive impact on US housing construction. Last Thursday, President Donald Trump signed an executive order which involves the introduction of 25% tariffs on imports from Mexico and Canada, only to pause them for 30 days shortly before they came into force.
* Note: The Holzkurier revamped its sales indicator. For more information, click here.
