Nordic sawmills are facing stronger price competition as German and Austrian producers increase their presence in the European spruce sawn timber market.

Recent market assessments indicate that sawmills in Germany and Austria are offering spruce products at approximately EUR 10-20 per cubic metre below Nordic price levels. The change is significant because Nordic suppliers held a clearer cost advantage earlier in 2026, when Central European producers were affected by tighter roundwood availability.

The latest development highlights how quickly competitiveness can shift across the European wood industry. Access to logs, raw wood costs, freight rates, energy expenses and subdued construction demand are now shaping purchasing decisions for spruce timber, structural lumber and other softwood products.

🌲 Central European spruce supply increases price pressure

German and Austrian sawmills currently benefit from relatively good access to logs and an ample supply of sawn spruce. Market participants report that Central European suppliers are approaching buyers more actively and attempting to recover sales volumes in several regional markets.

At the same time, most assessed spruce prices remained broadly unchanged during June. This means that the competitive gap is being driven less by a general market decline and more by differences in production costs, raw material availability and the commercial strategies adopted by individual sawmills.

For timber buyers, wholesalers and wood product manufacturers, the wider range of offers may create opportunities to renegotiate contracts or diversify suppliers. For producers, however, the growing price gap increases pressure on margins and makes it more difficult to transfer higher sawlog, energy and logistics costs to customers.

🪵 Expensive sawlogs weaken Nordic competitiveness

The Nordic wood industry continues to face elevated raw material costs. In Finland, average standing-sale prices for spruce sawlogs reached EUR 83.65 per cubic metre in June 2026, up 8.4% from the January low. Pine sawlog prices also increased, reaching EUR 78.52 per cubic metre.

These higher wood procurement costs are difficult to absorb while European sawn timber prices remain relatively stable and demand from several construction markets remains cautious. Freight constraints and higher spot transport costs from Northern Europe further reduce the ability of Nordic sawmills to compete with suppliers located closer to Central and Southern European customers.

The pressure is already visible in company results. Swedish producers reported weaker profitability during the second quarter, lower deliveries and production adjustments. Some mills have continued selling at very competitive prices to protect output and cash flow, even when those transactions provide limited or negative margins.

🪚 What the price gap means for the European wood market

The current gap between Central European and Nordic spruce prices may influence trade flows throughout the second half of 2026. Buyers of construction timber, planed wood, packaging lumber and industrial wood components are likely to compare offers more closely across Germany, Austria, Sweden and Finland.

For Nordic sawmills, restoring competitiveness may require lower sawlog costs, more efficient production, improved freight conditions or stronger demand in export markets. For German and Austrian producers, the opportunity is to regain volumes while maintaining discipline in a wood market where construction activity and consumer confidence remain uncertain.

Companies monitoring these developments can review WoodBusinessPortal.com's analysis of European lumber market supply, demand and price trends, together with its broader overview of wood market statistics, imports, exports and forecasts in the European Union.

Outlook for spruce timber and sawmill margins

The short-term outlook remains cautious. Abundant Central European supply is limiting upward price movement, while Nordic producers continue to deal with high raw wood and logistics costs. A meaningful improvement in sawmill margins will depend on stronger construction demand, lower procurement costs and a better balance between lumber production and consumption.

The market may also remain fragmented by region and product category. Planed timber and specialised wood products could perform better than standard construction grades, while suppliers with flexible sourcing, efficient logistics and access to multiple export destinations will be better positioned to manage volatility.

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Sources:

Fastmarkets
Wood Central
Natural Resources Institute Finland