Many German sawmills will operate an extended Christmas shutdown and are likely to curtail production in 2012, according to the German Sawmilling and Timber Industry Association (BSHD).

BSHD made the prediction after discussions with member companies, who represent two-thirds of softwood sawmilling volumes in Germany.

It said curtailments started in November and will be extended further in December, culminating in extended cutbacks going into 2012, depending on the state of log and sawn timber markets.

BSHD president Klaus Böltz said the German timber industry had lost market share due to high domestic log prices.

“German timber products are no longer competitive on price,” he said.