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German Timber Market Report --
German sawmills drive up timber prices - What forest farmers get for their wood ?
[May 26, 2025]



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



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