The Indian log market is experiencing a notable slowdown in 2025, primarily attributed to the early onset of the monsoon season. Traditionally, the monsoon season hampers construction activity and disrupts supply chains, leading to a decrease in demand for timber and logs.
Impact on timber supply and demand
The early arrival of the monsoon has led to a reduction in construction activities, which in turn has decreased the demand for timber. This decline in demand has resulted in a softening of the log market, with prices remaining weak. Additionally, the monsoon season has disrupted supply chains, making it challenging for suppliers to deliver logs to various regions. This disruption has further contributed to the slowdown in the log market.
All about the Indian log market
The cost of domestic teak logs has increased significantly in recent years. Strong domestic demand from the furniture and construction industries is fueling the size and expansion of the Indian log market. With both native species like teak and sal as well as imported types like New Zealand’s Radiata Pine, which has sustainability and adaptability advantages, it’s a varied market. A network of importers, distributors, and producers makes up the market, which presents constant opportunities and problems such as changes in global supply and demand and regulatory compliance.
Market size and expansion
With a value predicted at USD 16.07 billion in 2025 and expected to grow to USD 24.47 billion by 2030, the Indian wood market is a substantial industry.
According to GII Research and Global Wood Markets Info, this rise is driven by the expansion of the domestic woodworking industry as well as the rising demand for wood and wood products.
Important wood types and their origins
Native Timber: There are several different types of native timber in India, such as teak, sal, and deodar, each with special qualities. Because of its endurance, teak is highly prized, particularly types like Burma and Nilambur teak.
Imported Timber: A considerable amount of the demand is satisfied by imported logs, with New Zealand’s Radiata Pine becoming more and more well-known as a substitute for the Chinese supply. Ukraine, Indonesia, Germany, and Malaysia are further import sources.
Important cities like Bengaluru, Mumbai, Delhi, and Pune have a lot of suppliers.
Regional variations
While the overall log market is experiencing a downturn, certain regions are witnessing varying levels of activity. For instance, Gandhidham has seen sawn timber prices remaining weak around 491 INR per CFT. However, the market is not expected to improve in the third quarter, with demand anticipated to lift again after the Diwali festival in late October. In contrast, Tuticorin Port is receiving its first bulk shipment of radiata pine logs after a seven-year gap, indicating a potential shift in regional market dynamics.
The log market is expected to remain under pressure in the short term due to ongoing monsoon-related disruptions affecting construction activity, logistics, and material movement across the country. Unless there is a notable shift in weather conditions or a sharp recovery in demand post-monsoon, the market is likely to see limited upside. However, the upcoming festive season, particularly Diwali in late October, may provide a boost to the market as construction activities resume and demand for timber increases.
The early monsoon of 2025 has significantly impacted the Indian log market, leading to a slowdown in demand and disruptions in supply chains. While the market faces challenges in the short term, the potential for recovery exists with the onset of the festive season. Stakeholders in the timber and woodworking industry should closely monitor weather patterns and market trends to navigate the current market conditions effectively.
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