German timber prices rose sharply in the first quarter, forest owners unanimously report. One reason is the very good export to the USA. At the same time, sales of construction timber could rise sharply due to a new construction boom - the reason is the new special fund. Timber prices have already risen dramatically in the USA.

Even without strong exports, demand in many regions is higher than the current timber supply. The reason: the relatively low beetle infestation in many regions in recent months.

Prices for spruce sawlogs in particular rose in February and March, according to forest owners' associations.

In any case, the fact is that prices for spruce sawlogs in particular rose in February and March, according to forest owners' associations. For spruce, prices for fixed length and long timber for quality B/C in strength class 2b+ are quoted at an average of 103 to 115 euros per cubic metre (plus VAT). Some buyers also pay a bonus for required length mouldings.

In many regions, prices have also been extended beyond the first quarter until the end of April. For beetle wood, 15 to 20 euros less is usually paid and the discount for D-wood is 25 to 35 euros per cubic metre. This means that prices have risen by 5 to 10 euros in the first three months of 2025.

Pine sawlogs are also benefiting from the robust demand and prices are also rising. Prices for fixed lengths for quality B/C in strength class 2b+ are quoted at an average of 80 to 90 euros per cubic metre (plus VAT).

The reason for the sharp price increase is the continuing low availability of high-quality round timber. Forest owners' associations often explain this with the very low quantities of damaged timber compared to previous years. However, prices are being driven up by the recent surge in exports to the USA - which has boosted demand and driven up prices, according to timber traders and sawmills.

Exports to the USA are decisive for the further development of timber prices in Germany and Europe

Special fund could boost demand for timber
The good export opportunities can partially offset the weak sales of sawn timber on the domestic market. Nevertheless, the poor situation in the construction industry has so far prevented a recovery in sawn timber prices.

Pine sawlogs are also benefiting from robust demand and prices are also rising.

However, the construction industry appears to have bottomed out. Looser lending policies and a further fall in interest rates are expected to lead to a significant increase in construction investment and thus also to improved demand for construction timber. However, the sawmill industry is still having problems selling sawn timber in large quantities on the German and European domestic markets.

The decisive factor in Germany will be whether the huge special fund triggers a surge in demand for the construction sector and therefore also for the timber industry. Felix Pakleppa, Managing Director of the German Construction Industry Association, says: ‘The construction industry has the capacity for new orders and the expertise to realise the necessary infrastructure projects. We can start immediately as we are not currently working at full capacity. 40 per cent of all construction companies report a lack of orders.’

This could lead to a significant revival in demand for construction timber and therefore sawn timber prices on the domestic market in 2025. Especially if supply is noticeably reduced due to strong exports.

Paper, pulp and board industry sites continue to be well stocked with coniferous industrial timber and production volumes are sometimes reduced. However, prices are largely stable. Industrial timber prices were lowered at the beginning of the year. However, the already reduced prices can maintain their current level. However, forest owners' associations expect sales to improve in the coming months.

In contrast, the market situation for energy wood is difficult. Stocks are usually well filled and demand is correspondingly low. Marketing outside of long-term contracts, especially for lower qualities, is very difficult. The demand for high-quality firewood is also declining; here too, supply exceeds demand. The sales situation for wood chips also remains problematic.

Lumber prices in the USA go through the roof

In the US, lumber prices jumped to over USD 660 per thousand board feet in March, reaching a two-and-a-half year high amid supply shortages, trade concerns and robust demand.
 
The number of housing starts in the US rose unexpectedly by 11.2% in February, supporting demand for building materials. Meanwhile, supply remained tight as production cuts in Canada - due to sawmill closures - reduced North American softwood lumber capacity by 3.1 billion board feet.
 
The problems are further exacerbated by the uncertainty surrounding US tariffs, which recently stood at 14.5 % but are expected to double. As a result, construction companies have been hoarding lumber, a strategy that has driven prices up by up to 25% in the past.
 
In anticipation of further trade restrictions and supply chain disruptions, sawmills in the US have already increased prices by 25% to 65%, exacerbating market volatility, TradingEconomics analysts report.
       
Source: agrarheute.com