European sawn timber market trends and forecast for January 2026

arket due to challenging pricing conditions that have limited trading and impeded navigation of the market’s regulatory environment. Market participants noted that the German market would require structural reform to unlock greater potential for Nordic exporters, with better alignment of demand sectors with available supply streams seen as essential for meaningful market growth.

The French and Benelux markets were highlighted as regions where pricing and market fundamentals are more closely aligned, reflecting a relative balance of supply and demand. Market sources indicated that these areas exhibit steadier trading conditions compared to other European regions, with construction activity maintaining a more stable footing.

In the UK, the market continued to be an important destination for Nordic exporters, especially for pine sawfalling dimension products. Market watchers pointed out that this particular dimension serves as a key pricing reference for the market, influencing the pricing of other grades and dimensions. Furthermore, discussions revolved around construction-grade C24 timber as a significant export specification to the UK. However, the market’s pricing dynamics for C24 timber were viewed as volatile at times, often defying traditional market logic and leading to pricing anomalies based on complex supply-demand interactions rather than rational cost considerations.

Meanwhile, in Germany, market activity remained subdued, with Nordic suppliers facing challenges due to difficult pricing conditions that constrained trading opportunities and made market navigation complex. Observers noted that the German market would need substantial restructuring to enable Nordic exporters to fully capitalize on its potential, emphasizing the importance of aligning demand sectors with available supply to drive meaningful market expansion.

Overall, the European sawn timber market in January 2026 signaled cautious sentiment, with Nordic exporters adapting to evolving supply dynamics post-Storm Johannes amid hopes for a potential recovery by the end of the first quarter. While prices in key European markets remained stable with some minor fluctuations in select grades and regions, the overall market mood was one of stability and conservatism. As industry players looked ahead to the coming months, there was a sense of cautious optimism that the worst of the downturn might be easing, setting the stage for a potential stabilization in market conditions as the year progressed.