Despite high energy prices and ongoing uncertainties, economic experts expect a modest economic recovery, driven primarily by industry and exports. The construction industry, on the other hand, is in its eighth year of recession. Since 2018, it has lost about 25% of its gross value added.

Coniferous Sawlogs
The persistently weak construction sector in Austria, the collapse of foreign markets due to armed conflicts, and uncertainty caused by U.S. trade policy have been putting pressure on coniferous sawn timber sales for months. Demand for softwood sawlogs is therefore subdued, partly because sawlog inventories are generally well-stocked due to a revival in the sawlog market driven by storm-damaged timber, or are being adjusted to match sawn lumber sales capacity. Sawlogs that have been made available are still being hauled away promptly, though isolated instances of supply restrictions have already been reported in Lower Austria and Styria. Prices are under some pressure and have already been adjusted in some regions. Unfazed by market developments in spruce, demand for larch continues to exceed supply.

Industrial Lumber
Due to significantly lower sawn lumber production and reduced import opportunities, demand for industrial roundwood remains strong. In addition to pulpwood, there is now also increased demand for grinding wood. Freight capacity is sufficient, and the shipment of available assortments is proceeding quickly, as is their pickup. Demand for beech pulpwood remains normal, with prices stable.

Energy Wood
The energy wood market follows seasonal trends. Buyers try to build up appropriate inventories at the start of the heating season. As a result, even quantities not covered by long-term contracts can be sold at stable prices. Increases in demand for high-quality firewood also follow seasonal patterns; unlike fossil fuels and pellets, prices remain stable.

Planned uses should always be coordinated with the buyers in advance and set forth in writing. Over the coming months, the primary focus should be on forest sanitation and removing trees infested by bark beetles from the forest. This should also include elevations above 1,000 m.

Implementation of the EUDR will begin on December 30, 2026. As of that date, an identification or reference number will be required for the commercial use of wood. More detailed information on this topic is expected to be available starting November 2, 2026, at www.eudr-meldung.at.

All prices listed refer to transactions during the period from September through early October 2026 and are net prices, to which sales tax must be added. The following tax rates apply to the sale of wood to businesses: 13% for all product lines under the flat-rate VAT system; under the standard taxation system, 13% applies to energy wood/firewood and 20% to roundwood. Subject to changes and deviations.

Source: LKO