All lots sold: firewood prices rose by more than 70% at timber auctions
16 March 15:16
The main timber auctions for delivery in the second quarter of 2026 have concluded successfully: 100% of the offered volume has been contracted. The average price of firewood during the auctions rose by 73%.
This was reported by the press service of “Forests of Ukraine,” as reported by "Komersant Ukrainian".
Timber Auctions
The main timber auctions for delivery in the second quarter of 2026, which began in mid-February, are continuing. This year, in response to numerous consumer requests, the state-owned enterprise “Forests of Ukraine” has significantly increased its supply of forest products. Over 1.5 million cubic meters of forest products have been put up for auction, which is 250,000 cubic meters more than usual. Starting prices are set at the level of the first quarter of 2026 (8% of the consumer price index), and they are significantly lower than current selling prices.
In most regions, except for Volyn and the Carpathians, the auctions have already concluded, and the initial results can be summarized as follows:
- 100% of the volume is being contracted as both commercial timber and firewood for industrial use (FI).
- The average price of firewood increased by 73% compared to the starting price—to 2,520 UAH/m³ (current selling price—2,460 UAH/m³).
- The average price of commercial timber has increased by 26%—to 6,500 UAH/m³ (current selling price—7,400 UAH/m³).
- The average price across all product types increased by 31%—to 5,200 UAH/m³ (current selling price—5,300 UAH/m³), which corresponds to the average selling price level of the fourth quarter of 2025.
The quarterly rise in prices for commercial timber has been ongoing since the second half of 2024. Currently, the trend has paused: the price settled above the starting price but below the current one, which effectively represents a price correction for round timber to the level of the third and fourth quarters of 2025.
Due to the price correction, some consumers opted out of first-quarter products, necessitating additional auctions (Dutch auctions) with lower prices. Over 100,000 m³ of round pine logs have been put up for “Dutch” auctions.
Since the beginning of the year, the state-owned enterprise “Forests of Ukraine” has harvested 29% more timber products than at the start of 2025, yet sales volume has increased by only 3%. Despite numerous market claims of a resource shortage, the additional increase in the supply of commercial timber had virtually no impact on demand, leading to a surplus and a rise in inventory levels.
This imbalance specifically concerns commercial timber, while industrial firewood is being sold in full: the current sales mix is 40% roundwood and 60% firewood.
To reduce inventory, the company is adjusting harvesting to market demand. The priority for the near term is to conduct thinning and forest restoration operations, which will ensure a higher yield of firewood. Harvesting of commercial timber in areas designated for main-use logging will take place only if there is sufficient demand.
Currently, the average daily harvesting volume is 45,000 m³.
