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June 15, 2020

Germany: The price of wood is falling sharply in the coronavirus crisis

Germany: The price of wood is falling sharply in the coronavirus crisis

The price of roundwood in Germany has collapsed sharply and is causing financial hardship for German forest owners. But one industry is not directly affected by the low wood price: pellet production – and this creates opportunities.

Storms, drought, bark beetles, and now the coronavirus crisis are putting German forest owners under increasing pressure. A large amount of storm-damaged timber has saturated the market, causing the price of wood to collapse by more than half in some cases.

The Bavarian State Forests have therefore opened their wet storage facilities for private and communal forest owners to store the wood for years. The only thing is that the price of timber will not recover that quickly, and the wood loses value through storage. Besides, further damaged wood is expected from the bark beetle.

The city of Augsburg is also affected by the low price of wood

Also, the city Augsburg is a municipal forest owner. About 8000 hectares of

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