German timber prices plummet
Lumber prices fell sharply in July and August, and most sawmills attempted to slow the sharp drop in prices by reducing supply, with a corresponding drop in demand for logs.
At the same time, sawmills reported a lack of sales opportunities for almost all species. Demand for sawn timber was extremely weak in Germany as well as in Europe and abroad. The main reasons for this were the sharp drop in demand for construction timber and the worsening of the construction crisis.
In addition to this, rising interest rates and the general economic crisis have led to a sharp increase in the number of bankruptcies, the sum of which has had a significant impact on timber prices. Spruce timber prices are mixed - new logging often stops.
According to forest owners' reports, the price of the main species spruce A/C 2b+ has fallen by 20 to 30 euros per cubic metre in recent weeks, and pine sawn roundwood can hardly be sold any more.
The paper, pulp and board industry is also reported to be very well stocked in most cases. Forest owners report a correspondingly low demand for logs from the softwood industry and softening prices.
