Demand for Bavarian logs is increasing, price has bottomed out

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After the worst wood market crisis of the past 30 years, the Bavarian State Forests have seen a consolidation of the wood market and a noticeable increase in the price of softwood. Martin Neumeyer, Chairman of the Board of Management of the Bavarian State Forests, sees the reasons for this development mainly in three current developments.

On the one hand, he mentions the “unbroken demand for wood and wood products - both regionally and internationally”. “The construction industry is booming in all areas. This creates increased domestic and export demand, which has a positive effect on prices. After the sharp rise in the price of sawn timber and wood products last year, the prices for the raw material, i.e. the tree cuttings, are now also rising. A total of over 200,000 of around 310,000 solid meters have already been driven to sawmills.

The positive market development is supported by the new Bavarian building regulations, which came into force on February 1st. "In summary, the changes to the Bavarian building regulations now make building with wood easier in building classes 4 and 5," said the head of state forestry. And the increased environmental awareness of the population is also increasing the demand for wood products.

“In the last dry years, our employees fought for every square meter of state forest. Our motto was: We don't give up a square meter of state forest. The stocks of coniferous wood could be kept in the Bavarian state forest - in contrast to other German or European forest companies, ”says Neumeyer.

The current amounts of damaged wood are significantly lower than in the last two years and the stocks of coniferous wood could be kept in the Bavarian state forest. The state forests have processed the beetle wood from last year: "If the weather in 2021 plays along and the economic situation remains positive, the forest owners can expect prices to rise further this year," Neumeyer is certain.

In the most important range of the state forests and the Bavarian forestry as a whole, the spruce trunk wood, there is a positive demand and price development. For pine, too, demand and price are increasing as a result of the positive development in spruce. There is a stable sideways movement in hardwood trunks. In the case of industrial wood (softwood and hardwood), the negative development remained in 2020 and a cautious recovery in demand and price can be observed.

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