European sawn timber market trends and outlook (May 2026)

Fastmarkets is pleased to publish the following European sawn timber price assessments and market story. The price table below is in pilot phase, and we are continuing to recruit price contributors.

To find out more about how to get free access to the new European sawn timber prices, please contact Tuomo Neuvonen and Cat Vitale at tuomo.neuvonen@fastmarkets.com and cat.vitale@fastmarkets.com.

Market overview

As the market entered May, it became clear that spring demand has not lived up to expectations, with suppliers noting they are still “holding their breath.”

A mention of spruce availability has moved to the front of conversations, with market participants expressing little optimism for near-term recovery.

“The market is flooded by spruce at the moment from all sides,” said one source. “Very big sawmills in central Europe are offering what they can’t sell in the Middle East here in the local markets, making prices fall more and more,” they added.

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The demand weakness was reported to have been compounded by a stock overhang of buyers’ own making. Heavy purchasing through the fourth quarter of 2025 and into the first quarter of 2026 has left many sitting on full inventories, handing them unusual leverage over suppliers. “Buyers bought too much,” said one contact. “They bought and bought and bought and realized that now stocks are full, and they have enough to play with in that situation.”

The market conditions have caused multiple sawn timber producers to adjust or permanently curtail production levels, from Södra and Vida in Sweden to, most recently, Stora Enso in Finland.
On the whole, price movements in May remained largely flat across all assessed markets, which is common during mid-quarter. However, no changes reflected the earlier subdued demand conditions as well.

In Germany, France and Benelux, all tracked spruce grades were unchanged month on month following earlier increases, with limited momentum for further gains. The lack of movement was primarily linked to weak buying interest and cautious purchasing activity.

In the UK, domestic spruce prices were also mostly steady. Spruce sawfalling 50×100mm saw its upper range increase by €5 to €320 ($365), resulting in a slight uplift in the midpoint, while other spruce and imported pine grades remained unchanged. Overall, May pricing reflected a quiet market environment, where stability stemmed from a low price-base and limited demand, with some producers considering production curtailments in response to softer conditions.

Stora Enso to suspend production at Veitsiluoto sawmill in Finland in August

Production at Stora Enso’s 200,000 cubic meter-per-year Veitsiluoto sawmill at Kemi on the Gulf of Bothnia in northern Finland is to be temporarily halted from the beginning of August, a spokesperson for the major Finnish forest products company told Fastmarkets earlier this month.

The company said the mill would resume operation at the start of October, but all 56 employees will be laid off during the suspension. Stora Enso said the decision was based on “challenging market conditions, low consumer confidence, geopolitical uncertainty and high wood costs.”

The layoffs are based on negotiations conducted in late 2025, which covered the possibility of up to 90 days of temporary layoffs in 2026.

Stora Enso said customers would continue to be served by its other sawmills during the shutdown.

While Stora Enso is carrying out a strategic review of its Central European sawmills, the Veitsiluoto mill sits within its Nordic operations, which Stora said remain “strategically important.”

Finnish sawlog prices continue to increase in May

Average prices of softwood sawlogs moved higher in Finland in May, logging €77.28 per cubic meter for standing sales for pine and €82.86 per cubic meter for spruce, Natural Resources Institute Finland (Luke) statistics show. The average pine sawlog price increased by 1.6% month on month, while the average spruce sawlog price increased by 1.9%.

From the recent low in January, the average pine sawlog price in May was up by 5.6%, and the spruce sawlog price was up by 7.3%. Compared with the highs in June 2025, the price for pine is still 8.0% below, and the price for spruce is 3.4% below.

Market outlook

Some contacts have noted an acknowledgment that the market has “moved away from the peak of pricing,” with several sources saying they are beginning to feel the push for lower prices. A shift that is now showing up in June deals and early third-quarter discussions.

While seasonal slowdowns are starting to appear in several markets, particularly in the Netherlands, where a well-established summer building pause is now under way, there are concerns that this will compound demand weakness already in place rather than represent a temporary and recoverable dip.
Talks about the fourth quarter attracted more hope among contacts, with some expecting conditions to improve as the year closes out.

Any meaningful recovery remains conditional, however. One contact summarized their caution, stating “housing starts would need to show genuine signs of life, consumer confidence would need to improve, and the full economic effects of the war in the Middle East have yet to be fully absorbed.”

As one other source noted, the market would have needed a demand increase to shift the current dynamic. Whether that increase arrives before the year is out remains, for now, an open question.

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