This development is the result of increases in prices for pellets, sawmill by-products, lumber, and glued timber. It should be noted that the sales indicator only reflects prices, not sales volumes. If the latter were taken into account, the indicator would be at a much lower level, as demand in the core markets of the Central European timber industry remains rather weak.
Reduced cutting due to log shortage
Log supply is limited. For this reason, production output in Germany is expected to fall to only around 21.3 million m³ in 2025 – the lowest level since 2016 (see article Reduced output meets higher domestic demand). As a result, the German sawmill industry cannot satisfy the slightly increasing domestic demand.
The limited supply is also affecting Austria: Some large sawmills have introduced four-day weeks, and in some cases, shifts have been canceled. However, small private forest owners are expected to increase their deliveries starting in October and November, motivated by high log prices.
The shortage of available spruce wood leads to an increasing use of pine logs, whose price is rising accordingly. Pine lumber is now being used more widely – from packaging and construction products to solid structural timber in the manufacture of prefabricated houses. Due to emission-related issues, its acceptance remains limited only in timber structures.
Log prices keep rising
Log prices rose by €1 to €1.5/m³ in all regions analyzed by the Holzkurier. A largely uniform price level can be observed in Baden-Württemberg, Bavaria, and Austria. In central and northern Germany, prices are €3 to €4/m³ higher than in the south of the country, as bark beetle damage has reduced supply there. Overall, prices have reached or are very close to reaching record levels in many places in Germany and Austria.
When it comes to sideboard grades, there have recently been significant price increases in Germany and Italy. The Italian packaging industry’s capacity utilization has improved, while inventory levels remain rather low. In Germany, the situation is divided: Standard pallet lumber is under pressure due to imports from Eastern Europe, whereas special dimensions are in short supply. The southern German industry benefits from this situation, as it is increasingly delivering goods to the north.
Prices of glued timber construction products rising at different rates
There has been a noticeable recovery of the order situation for solid structural timber and glulam. Order volumes for the fourth quarter are high. In September, prices were up by €12/m³ (glulam) to €15/m³ (solid structural timber). What stands out is the wide range between the lowest and the highest prices: For solid structural timber, it is up to €40/m³ and for glulam, there is a price range of up to €80/m³. It is also noteworthy that the price of raw lumber for solid structural timber is currently higher than that of visible-quality lamellas for glulam – which is a unique situation.
Despite the fact that prices for Scandinavian lamellas are around €10/m³ lower, glulam producers continue to rely heavily on Central European suppliers, as reliability and precise dimensioning are more important than mere price differences. Nevertheless, the price of glulam lamellas increased by €7/m³ month on month in September.
“Oversupplied” US market
On the export markets, a mixed picture emerges. In the USA, prices fell sharply this summer due to tariff uncertainty and because large volumes were shipped there from Europe. Part of those additional volumes are still in warehouses on the East Coast. Some German and Austrian producers have withdrawn from the US market. At the end of September, prices have stabilized (Import tariffs: see article 10% tariff on softwood lumber).
