Over the LAST week, auctions on the Ukrainian Energy Exchange for untreated timber showed the following results:
- the exhibited volume was 13.15 thousand cubic meters;
- 9.54 thousand cubic meters of wood were sold;
- the cost of selling wood was UAH 31.31 million (including VAT);
- forest agencies received additional income during the English auction in the amount of UAH 1.67 million (including VAT).
Untreated timber was sold by forestry enterprises from 5 regions of Ukraine. The largest volume was sold in Ivano-Frankivsk region.
The distribution of untreated timber sales was as follows: 55% – round timber, 45% – firewood.
Round timber
During the reporting period, 5.29 thousand cubic meters of round timber were sold for a total amount of UAH 21.9 million (including VAT).
The most sold species were pine, oak and fir, where their share in the overall structure was 66.10%, 15.28% and 10.06% respectively. There was also the sale of such species as red oak, spruce, ash, birch, beech and alder.
The average increase from the starting price at English auctions was 13%. Given that the auction step is 1%, the highest average was for alder – 45, birch – 42, red oak – 29.
Firewood
During the reporting period, the volume of sales of firewood amounted to 4.25 thousand cubic meters for the amount of UAH 9.37 million (including VAT).
The vast majority of firewood (94%) was sold for industrial use, while 6% was sold for non-industrial use.
Among firewood, spruce and pine were in the greatest demand, accounting for 58% and 15%, respectively.
The graph below shows the structure of firewood sales by assortment and species.
Price indices
The largest upward trend among the price indices for round timber was shown by fir, where the growth was 28% with a cost of 3,891.53 UAH/cubic meter including VAT.
In turn, the maximum decrease was observed in January. The weighted average price index amounted to 6,114.63 UAH/cubic meter including VAT, which is 29% less than last week’s figures.
Weighted average timber price index, for July 14 - 18, 2025
| Species | UAH/cubic meter (including VAT) |
|---|---|
| Silver birch | 5 618,08 |
| Forest beech | 3 758,33 |
| Black alder | 7 255,07 |
| Common oak | 15 915,43 |
| Common pine | 3 520,50 |
| European spruce | 3 113,71 |
| White fir | 3 891,53 |
| Common ash | 6 114,63 |
The price index for firewood for non-industrial use of the second group increased the most, reaching 1,200.00 UAH/cubic meter including VAT, which is 21% more compared to the previous period.
Among all types of firewood, the cost of firewood of the third group has decreased the most, which now amounts to 917.24 UAH/cubic meter including VAT, which is 1% less than the previous figure.
Overview of news on the timber market in Europe
Cautious optimism returns among European sawmills
In Central Europe, for the first time in almost three years, business confidence among sawmills has increased - the share of companies expecting an improvement in the situation has slightly exceeded the number of pessimists. Around 75% of respondents believe that their business will remain stable or satisfactory between July and September, with another 13% predicting an improvement, while 11% predict a deterioration. This shift in sentiment suggests a gradual recovery in confidence after a long period of stagnation due to weak construction demand and raw material shortages.
There is also a gradual increase in expectations for higher wood prices. More than a third of companies predict an increase in the price of softwood logs, which is explained by limited supply, inflation in harvesting and transportation costs, as well as increasing pressure on purchasing units across the region.
Poland’s forest industry hit by raw material crisis and rising debt
The Polish forest industry is experiencing its deepest crisis in decades: due to a shortage of raw materials, rising costs, and falling demand, companies are facing declining margins and reduced production. The situation is particularly difficult in the furniture, packaging and board segments, where contract performance is increasingly unprofitable. Against the backdrop of a strong national currency and weakening demand in Western Europe, some companies are forced to stop work to avoid even greater losses.
Positives in French wooden construction
Despite the general decline in the construction sector in France, the turnover of wooden construction increased slightly in 2024. Although the number of new residential projects decreased significantly - only 59 thousand houses were built, a third less than last year - the wooden construction segment held its position better than the market as a whole. Government incentives are expected to help gradually boost construction by 2025, although recovery will take 2–3 years. The share of wooden buildings in the total construction volume was 71% of the sector’s revenue, with the individual housing segment suffering the most, down 27.5% over two years.
Exceptional log price level in Finland
In June, average log prices in Finland remained high: spruce – almost €86/m³ (as in May), pine increased by 1% to €84/m³, birch – over €69/m³. Current prices have reached record levels, the last time such figures were recorded in 2007. Balance wood also shows historical highs: spruce – over €36/m³, pine and birch – around €35/m³. In supply contracts, prices have decreased slightly, but remain high – €53–54/m³.
Prices for Estonian spruce logs rise, pine logs fall on quiet summer market
As of July 1, 2025, the Estonian timber market is showing a seasonal summer slowdown due to a pause in sawmill operations. Spruce logs remain the most expensive at €101/m³ (+2% in three months) due to limited supply. Prices for spruce and pine wood are stable at €56/m³, while large pine logs have fallen to €90/m³ (–2%) due to lower activity. Wet weather is expected to boost demand and support prices.
Moody’s lowers outlook for forest products sector due to rising tariffs and slowing demand
Moody’s has downgraded its outlook for the global forest sector from "stable" to "negative," citing rising tariffs and weak demand as key factors putting pressure on profitability. Operating income is expected to fall by 2-4% in the lumber, plywood and pulp segments over the next 12-18 months. Tariffs have disrupted logistics and increased costs, while economic uncertainty and high interest rates are limiting investment in construction and manufacturing. Export-oriented companies remain particularly vulnerable.