The goal of this work was to analyse the supply side and demand side in roundwood market in Austria and to present a description of the price formation process. Based on monthly data, the influence of export prices for wood products on the domestic prices for roundwood has been tested. The prices of roundwood are determined mainly by the export prices for wood products and thus by the world market. This is particularly true for the highly competitive market in sawlogs where the fluctuation of export prices for sawnwood directly affect domestic roundwood prices. The strong market position of the domestic paper industry is the reason why international pulp prices have a delayed and weaker effect on pulpwood prices in Austria. The alternative uses of small diameter logs explain the influence of sawlog and energy prices on the price of pulpwood. Large-scale events that cause damage to forests hardly have any influence on the price formation of sawlogs. In the past three decades roundwood prices have risen less steeply than sawnwood and pulp prices.Long-term changes in price relations between rounwood and wood products may arise due to the divergent developments in productivity of forestry and of wood processing and woodworking as well as due to the tendency for commodity shortages.