Sales results of untreated timber at UEEX LLC for May 2025

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

• the exhibited volume amounted to 367.47 thousand cubic meters;
• 303.35 thousand cubic meters of wood were sold;
• the cost of timber sales amounted to UAH 1.23 billion (including VAT);
• forestry agencies received additional income during the English auction in the amount of UAH 303.85 million (including VAT).

Untreated timber was sold by forestry enterprises from 7 regions of Ukraine. The largest volume was sold in Kyiv region.

The distribution of untreated timber sales was as follows: 57% - round timber, 43% - firewood.

Round timber

During the reporting period, the company sold 172.73 thousand cubic meters of round timber for a total of UAH 991.18 million (including VAT).

Pine, oak, and alder were the most commonly sold species, with a share of 72.28%, 7.21%, and 6.81%, respectively. We also sold such species as birch, spruce, ash, aspen, beech and others.

Firewood

During the reporting period, the volume of firewood sales amounted to 130.62 thousand cubic meters for the amount of UAH 243.10 million (including VAT).

The vast majority of firewood (56%) was sold for industrial use, while 44% was sold for non-industrial use.

Among firewood, pine firewood was in the highest demand, accounting for 41% 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 round timber showed an increase. The most significant increase was recorded for such species as birch and beech.

The largest price increase among round timber was recorded for birch, which currently costs UAH 7,710.21 (including VAT). The main reason for this jump was the quarterly auctions held this month, which boosted demand for this species. Increased interest from buyers has led to increased competition, which has led to higher prices.

The opposite trend was observed for beech: the weighted average price for this species decreased by 8.6%, reaching UAH 3,933.75 per cubic meter (including VAT).

Weighted average price index for round timber, for May 2025

Among firewood, non-industrial wood of the second group rose in price the most, reaching UAH 2,072.90 per cubic meter (including VAT).

Non-industrial firewood of the first group had the largest decline in price - its price decreased by 2% and currently stands at UAH 1,558.50 per cubic meter (including VAT). The reason for this decline was weaker demand for this type of product.

Weighted average price index for firewood, for May 2025

Overview of news on the timber market in Europe

Austria: Spruce sawlog prices stable or rising in May 2025

In mid-May, the conifer sawmill market in Austria demonstrated steady demand despite signs of economic slowdown and ongoing fiscal and political uncertainty. Although the prospects for a rapid recovery in the construction sector look weak, sawmills across the country are operating steadily and accepting planned volumes of timber without delays.

Spruce sawmills remain in demand, with even small quantities of storm-damaged wood being sold quickly, indicating that the market is stable. Prices remain largely unchanged, with some cases of slight growth in some regions.

In contrast, the pine log market is facing complications. Sales are slow, forcing forest owners to quickly transport harvested timber to avoid loss of quality.

Austria. Prices (euro/m3), May 2025

EPF: Not enough European wood in 2040

The European Panel Manufacturers Federation (EPF) is sounding the alarm: under current policies, Europe could face an acute shortage of wood for the woodworking industry by 2040. At a press conference at Interzum in Cologne, the results of two independent studies were presented, which, despite their different approaches, came to the same conclusion: the demand for wood and wood fiber will exceed the capacity of European supply.

The main driver of consumption growth is the energy sector, which already uses about 60% of all wood mass in Europe, and this share is constantly growing. By comparison, panel producers use only 8% of harvested wood, with the rest coming from the pulp and paper industry and other industries.

EU Member States support zero-risk category to ease the burden under EUDR

Most EU countries have supported the idea of introducing a “zero risk” category within the REDD Regulation, which aims to simplify bureaucratic procedures for companies operating in regions with minimal risk of deforestation. The proposal, submitted by Luxembourg and Austria, was positively received during the EU Agriculture Council meeting on May 26 in Brussels.

Representatives of industry associations and forestry organizations across Europe welcomed the initiative as an important step towards a more flexible and effective application of EUDR with a focus on real risks.

New study shows that log export ban does not curb deforestation

Despite the increasingly widespread implementation of log export bans in order to preserve forests, recent studies show the opposite effect: in countries that have introduced such restrictions, deforestation rates have increased by an average of 22.3%. This conclusion was reached by researchers from the University of Clermont Auvergne in France and other academic institutions after analyzing data from 124 countries over the past two decades.

According to one of the authors of the study, Dr. Mohamed Zerbo, log export bans, although well-intentioned, often provoke indirect negative consequences. The decline in export revenues is forcing some forestry enterprises to shift to agriculture, which increases competition for land and accelerates the decline in forest cover.

In addition, bans reduce international log prices, which stimulates domestic wood processing. This attracts foreign investors, especially those who did not previously have developed processing facilities. As a result, the demand for raw materials within the country is growing, putting additional pressure on forest resources.