Sales results of untreated timber at UEEX LLC for June 2025

Last month, auctions at the Ukrainian Energy Exchange for untreated timber showed the following results:

• the exhibited volume sold amounted to 307.34 thousand cubic meters;
• 272.15 thousand cubic meters of timber were sold;
• the value of timber sales amounted to UAH 1.06 billion (including VAT);
• the state received additional income during the English auction in the amount of UAH 259.10 million (including VAT).

The distribution of untreated timber sales was as follows: 60% - round timber, 40% - firewood.

Last month, untreated timber was sold in Ivano-Frankivsk, Khmelnytskyi, Ternopil, Zhytomyr and other regions.

Round timber

During the reporting period, the company sold 162.87 thousand cubic meters of round timber for a total of UAH 861.69 million (including VAT).

Spruce, pine, and beech were the most popular species sold, with a share of 48%, 20.91%, and 8.72%, respectively. We also sold such species as oak, fir, hornbeam, ash, larch and others.

The average increase from the starting price was 24%. Taking into account that the auction step is 1%, the highest average number of steps was for larch - 55, alder - 50 and oak - 47.

Firewood

During the reporting period, sales of firewood amounted to 109.28 thousand cubic meters for UAH 201.44 million (including VAT).

The vast majority of firewood (80%) was sold for industrial use, while 20% was sold for non-industrial use.

Hardwood firewood was in the highest demand, accounting for 42% of the total volume.

The graph below shows the structure of firewood sales by grade and species.

Price indices

Compared to the previous month, the weighted average prices for most roundwood products showed a decline. At the same time, growth was observed in some species, such as ash, beech and pine. Ash rose in price the most: its current price is UAH 7,746.60 including VAT, due to higher starting prices for this wood species.

Birch got the most significant decline in the weighted average price, down to UAH 5,077.92 per cubic meter including VAT. The main factors behind the decline were weaker demand and the absence of quarterly trading for this species this month.

Weighted average timber price index, as of June 2025

Among the firewood, non-industrial wood of the third group has risen in price the most. Its weighted average price increased by 11% and now stands at UAH 1,677.44 per cubic meter including VAT.

At the same time, the most noticeable decline was recorded for non-industrial firewood of the second group - its weighted average price decreased by 1% to UAH 2,050.14 per cubic meter including VAT. The decline was due to weaker demand for this type of product.

Weighted average price index for firewood, as of June 2025

Overview of news on the timber market in Europe

Polish forest industry criticizes EUDR

The Polish Chamber of Commerce of the Forestry Industry (PIGPD) has sharply criticized the current version of the EU Timber Regulation (EUDR), emphasizing that its implementation poses a threat to the stability and competitiveness of the entire European forestry sector. In its official position, submitted to the Ministry of Development and Technology of Poland on July 2, the Chamber called for an immediate revision or postponement of the regulation. PIGPD also expressed its support for the initiatives to simplify the EUDR provisions proposed by Luxembourg and Austria during the last EU Council on Agriculture. These changes are supported by a growing number of member states, including Bulgaria, Croatia, Czech Republic, Finland, Italy, Latvia, Portugal, Romania and Slovenia. The main purpose of the proposed changes is to reduce the excessive administrative burden on companies operating within the EU.

Swedish sawmills face weak construction market and export fluctuations

The construction sector in Sweden is showing signs of slowing down, which poses ongoing challenges for local sawmills. According to the Swedish Federation of Forest Industries (Skogsindustrierna), the pulp and paper industry also showed weak growth this spring. Exports of wood, paper, and pulp to the United States are experiencing significant fluctuations due to the expectation of new decisions on trade tariffs.

"The year started unexpectedly strong for the Swedish sawmill industry, but it is now clear that the recovery has stalled. The construction climate remains weak, while the industry has to balance high costs with tight raw material supplies, currency-related competitiveness risks and a potential trade war," said Christian Nielsen, market analyst for wood products at the Swedish Forest Industry Federation.

At the same time, in January-May, wood products supplies increased by 5.3% compared to the same period last year. The most noticeable growth was observed in March, which was one of the most successful months in terms of supply volumes in recent years.

Softwood lumber market outlook: Europe to benefit from sanctions and stable pricing in 2025

The latest reports from European and international sources confirm Europe’s stable position in the global softwood lumber market, despite mixed demand trends in certain regions. In the United States, the market is showing signs of stabilization, driven primarily by restrictions on supplies from Canada rather than a revival in the construction industry. At the same time, China has reduced imports due to problems in its construction sector, and demand in Japan remains consistently low.

The market in the MENA region (Middle East and North Africa) shows mixed dynamics - some countries are increasing wood consumption, while others remain passive. Against this backdrop, European producers manage to maintain production volumes and expand export destinations, partially offsetting weak domestic demand. In 2025, production is expected to grow by 3-4%, which will be the result of increased efficiency of operations and a strategic focus on foreign markets.