The state-owned enterprise “Forests of Ukraine” has put more than 1.5 million cubic meters of timber products up for auction as part of the main bidding for the second quarter of 2026, which is 250,000 cubic meters, or 20%, more than usual volumes, the state-owned enterprise’s press service reported on Facebook.
According to the report, starting prices are set at the level of the first quarter of 2026 (+8% relative to the consumer price index) and are significantly lower than selling prices. In most regions, with the exception of Volyn and the Carpathians, the auctions have already taken place. Preliminary results indicate that 100% of both commercial timber and firewood for industrial use (FI) has been contracted.
The state-owned enterprise noted that the average price of firewood increased by 73% compared to the starting price, reaching 2,520 UAH/cubic meter, while the price of commercial timber rose by 26%, reaching 6,500 UAH/cubic meter. Overall, across all product types, the average price increased by 31%, to 5,200 UAH/cubic meter.
“Timber has been getting more expensive every quarter since the second half of 2024. Finally, the trend has paused. The price settled above the starting price but below the current one. In effect, there has been a price adjustment for round timber to the level of the third and fourth quarters of 2025,“ reported ”Forests of Ukraine.”
The price adjustment affected the fulfillment of first-quarter contracts: despite the availability of harvested products, some consumers declined to purchase them. In such cases, “Forests of Ukraine” uses Dutch auctions with price reductions. Over 100,000 cubic meters of round pine have already been listed for sale.
Overall, since the beginning of the year, harvesting has increased by 29% compared to the same period in 2025, but sales volume has increased by only 3%.
“At meetings and conferences, the market cited a shortage of resources and unused capacity, but in reality, it did not respond to the increase in the supply of commercial timber. As a result, there is a surplus of resources and a significant increase in warehouse inventories,” the report notes.
The imbalance applies only to commercial timber, while consumers of industrial firewood are purchasing the full volume (sales breakdown: 40% roundwood, 60% firewood).
To reduce inventory, the company plans to adjust its harvesting strategy: priority will be given to thinning and forest restoration operations that yield more firewood. Currently, the average daily harvesting volume is 45,000 cubic meters.
