February brought noticeable price changes in the timber business, particularly for spruce and pine logs. In several regions of Germany, experts and forest owners have observed a significant increase in prices. This is largely due to the imbalance between supply and demand, which is reflected in rising prices.
In many parts of Germany, the demand for round timber significantly exceeds the available supply. This imbalance is leading to significant price increases, particularly in the area of spruce sawn logs. Prices of between 105 and 115 euros per cubic meter are being asked for quality B/C in strength class 2b+, plus VAT. It can also be observed that buyers are paying bonuses for special lengths. This situation leads to an attractive market environment for producers, but poses challenges for buyers.
Prices for pine sawlogs are also on the rise. Robust demand is driving prices up further, which is particularly noticeable in regions with low timber stocks. While the high-quality ranges are benefiting, there are still clear differences between beetlewood and D-wood. Beetlewood sells for an average of 15 euros less, while D-wood is even 25 euros per cubic meter less expensive than high-quality round timber. Nevertheless, price increases of 5 to 10 euros compared to the previous year can also be seen here.
Forest owner associations identify several factors as causes for the current price increase. One key factor is the decline in the number of beetles, which is the result of a lower overall volume of damaged timber. This development is particularly evident in comparison to recent years, in which Germany had to deal with a high volume of wood damaged by bark beetles. In addition, the availability of high-quality round timber is considered to be limited, which is further driving up prices.
In addition to the lower timber supply, positive economic developments in the purchasing countries are also an influencing factor. Markets such as the USA and China are repeatedly showing great interest, which is leading to increased export activity and thus to pressure on domestic market prices. All of this plays into the hands of forest owners, but requires new purchasing strategies from buyers.
Despite the positive price trend in the round timber sector, sales of construction timber remain difficult. This market sector is more resistant to rapid price adjustments, which is due to a saturated market. Here, market players are faced with the challenge of developing innovative ideas and business models to boost demand.
Overall, the current market conditions present both opportunities and challenges. While forest owners are benefiting from rising prices, buyers and traders are faced with the task of adapting to changing market conditions. The coming months will show to what extent this dynamic will consolidate and what measures are necessary to harmonize supply and demand in order to ensure a sustainably stable timber market.
