This surge is driven by strong domestic and European demand, coupled with stable supply from Ukrainian foresters.
1. Key Sales Statistics
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Total Timber Sold:
- 723 thousand cubic meters
- Total Value: 3 billion UAH
- Twice the volume sold in the same period of 2024 -
Regional Breakdown
- Volyn and Rivne forestry operations together made sales worth nearly 2 billion UAH.
- Vinnytsia and Cherkasy each surpassed half a billion UAH in transactions.
- Other resource-rich regions continue to hold ongoing trades.
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Sales Percentages
- 96% of roundwood offered is already under contract.
- Average price of roundwood rose by 20%.
- Result: 300 million UAH more than the starting price in concluded contracts.
2. Demand Leaders and Price Trends
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Alder-Birch Segment
- 100% of the offered volume was purchased.
- Price surge of over 70% for alder and birch.
- Demand mostly from plywood manufacturers, prompting intense competition.
-
Pine
- Despite a sharp rise early in the year, pine prices still rose further by 13%.
- 98% of pine volume now contracted.
-
Firewood (Industrial Use)
- 82% of offerings sold, with a 9% average price growth.
-
Fuel Wood (Heating)
- Relatively low demand: few purchases as the current heating season ends, and buyers are not rushing to stock for next winter.
3. Reasons Behind the Sharp Demand Increase
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Low Inventories
- Late last year, wood processors refrained from building large stockpiles due to concerns over energy stability. Production remained uninterrupted, boosting current demand. -
European Market Recovery
- As the European economy recovers, demand for Ukrainian timber has rebounded, particularly in construction and manufacturing sectors. -
Exchange Rate Expectations
- Prospective Q2 currency fluctuations make timber an attractive tangible asset, fueling advance purchases.
4. Outlook and Supplier Response
- Forests of Ukraine indicates the timber market was stagnant for much of the last year, but has shown signs of revitalization since late 2024.
- The enterprise plans to increase supply accordingly to meet the robust domestic and export demand.
- Although the firewood segment lags, producers anticipate a renewed interest closer to the next heating season.
For Reference
- Forests of Ukraine is among Europe’s largest single forest managers, overseeing 6.6 million hectares of state forest lands under the State Forest Resources Agency.
With steady supply and a rising appetite for various wood categories—especially alder, birch, and pine—the Ukrainian timber market appears poised for a strong Q2–Q3 in 2025, benefiting both local and international industry players.
