The first half of 2026 has done little to solve the problem facing German sawmills. Logs became markedly more expensive early in the year and have stayed expensive, while the market for softwood lumber has remained too weak for mills to recover those additional costs from customers.

Softwood sawlog prices stopped climbing during the second quarter, but the expected correction did not follow. Supply has remained relatively limited, not least because Germany has so far avoided the large influx of bark beetle timber that has disrupted the market in previous years.

For forest owners, the absence of substantial salvage volumes has helped underpin the market. For sawmills, it has removed one of the few factors that could have brought raw material prices down.