
The high demand and the dry weather in southern Germany have
recently enabled an undisturbed timber harvest.
The timber market in southern Germany is stable with positive
trends. However, the drought and the bark beetle are causing
some concern.
Despite repeated dry spells and increasing demand from the
north, the timber market in southern Germany is stable in 2025,
especially in the sawn timber sector. With the exception of the
southernmost parts of the country, there is increasing drought
to contend with. On the other hand, the weather was ideal for
logging. Prices are not quite as high as in western Germany.
Very good! This was the verdict of the vast majority of
respondents on the development of the timber market in southern
Germany over the past weeks and months. While the mood was still
gloomy at the end of 2024, this has changed significantly with
the start of the new year. ‘The price rises by one euro every
week!’ said one interviewee.
Sawmills as price drivers
Similar to the other regions, supply fears among sawmills are
clearly identified as a price driver in the south. However, it
is flanked by actual economic upturns, combined with price
increases in sawn timber.
The reason for this is not least the improved export prices to
the USA. Sawmillers have recently been able to earn money again
with exports. However, it remains to be seen how export prices
will develop. Donald Trump's tariff policy is too erratic.
Uncertainties on the timber market
With the introduction of the special tariffs, the price
barometer for lumber futures on the Chicago Commodity Exchange
plummeted southwards, only to recover slightly shortly after the
announcement of the tariff pause. What happens next is
unfortunately unknown.
In any case, the conditions for timber harvesting in southern
Germany were excellent. It has been dry since January, so that
logging, felling and removal have not been hindered by excessive
amounts of water.
Timber outflow to the north secures sales in the south
Added to this is the constant demand for timber from the
northern parts of Germany. This means that necessary final
sanitary cuts and thinning residues can be processed at full
speed without having to worry about a lack of sales. The fact is
that there is still a shortage of needlesaw logs in Germany,
even if this is not noticeable in the south, apart from the
intensive outflow of timber to the north.
However, where the logistical infrastructure does not allow for
an outflow of timber for long-distance transport because it is
not possible to load it onto block trains or ships, there are
also reports of faltering transport and a slight hump in the
market.
Forest farmers' worries
In the south, as in the rest of Germany, apart from the edge of
the Alps, people are not worried about too much water, but about
too little - in several respects. If the drought continues, the
next bark beetle calamity is imminent. Although the initial
population of the bark beetle has been successfully decimated,
it is not so small that it will not explode again if the hot,
dry weather continues. Anyone shipping timber by water is also
worried about falling water levels in the rivers. Loads already
have to be significantly reduced in some cases in order to
reduce the draught of the ships.
Strong demand is stabilising prices
The steady pull from the north is also stabilising prices in the
south. The leading assortment of spruce sections BC 2b+ achieves
105 to 115 €/m³. The price gradation by strength class is mostly
€10/m³, often less in Baden-Württemberg. Beetle wood that is not
graded as D is discounted by €20/mm. Long timber is around €5
per cubic metre above the section prices.
Pine cuttings realise 80 to 90 €/m³ in the leading assortment.
The shortage of timber is also noticeable here, although not to
the same extent as in the calamity areas. The price gradation to
2a and 1b is 5 to 10 €/m³, depending on the contract. Larch and
Douglas fir are in high demand at prices of up to €140/m³.
Loss of the UPM paper mill forces differentiation
The UPM paper mill in Plattling is noticeably absent from the
softwood industry in Bavaria. Forest owners are forced to
differentiate between the formerly large pulpwood block. Some of
the wood goes to the weak wood sawmill, some to paper or OSB
mills further away or in new areas such as fence wood or animal
bedding.
The regional differences in marketing opportunities result in a
relatively wide price range for both the ISN and the ISFK. In
Baden-Württemberg, the prices quoted were mostly higher than in
Bavaria, where the ISFK range and coniferous firewood are
occasionally described as almost unsaleable. One reason for this
may have been the heavy snowfall at the end of 2023, which
resulted in huge quantities of weak wood, especially coniferous
wood. The firewood market in southern Bavaria is overcrowded.
Low supply - hardwood market is competitive
However, the high demand for softwood and the attractive
conditions in this market segment are at the expense of the
hardwood market. There is far too little beech wood on the
market, according to hardwood sawmillers. The main reason for
this is that there are too few people available because so much
is needed in softwood. There is also a shortage of beech wood,
partly because the hardwood market has picked up since the
beginning of the year. The quantities of beech wood initially
ordered by the hardwood sawmillers are no longer sufficient.
This surge in demand is keeping prices stable.
The market situation for oak is differentiated according to the
motto: good and strong hui, weak and bad pfui. While strong B
qualities are in high demand and prices on the spot market are
rising accordingly, the opposite is true for weak C timber.
Prices here are below the previous year's level.
The oak splendour beetle is also causing increasing concern in
the south; although it does not pose a threat to the population,
it is increasing in frequency. Other types of damage such as
slime flow can also be observed more frequently on oak trees.
Source:
wochenblatt-dlv.de