Russia’s sawmills face a smaller export market and deteriorating profitability. Japan still needs European softwood, but a weaker yen and greater use of domestic species are changing purchasing decisions. Across the Middle East and North Africa, demand for imported timber is increasingly constrained by freight costs, affordability and competition. GWMI continues its detailed coverage of the International Softwood Conference in Dublin.

Following the European market discussions covered in Part 1 and the North American, Irish and UK presentations examined in Part 2, the afternoon session at ISC 2026 turned to Russia, Japan and the Middle East and North Africa.

The three presentations described different pressures on the international softwood trade. Russia has lost much of the export business on which its modern sawmilling industry was built. Japan remains an important destination for European producers, but its housing market is shrinking and imported timber faces stronger competition from domestic species. In MENA, construction and infrastructure projects continue to generate demand, although the cost of supplying that demand has become increasingly difficult for both exporters and buyers.

For European sawmills, the discussion went beyond the volume each market might absorb. Product specifications, grade distribution, exchange rates, transport costs and the purchasing power of customers all determine whether a destination provides a commercially viable outlet.

A market may need timber without being able to pay the price a European producer requires. Low inventories may coexist with weak purchasing. Large forest resources may remain inaccessible or unprofitable to process. These were recurring issues in the session, which examined how changes in individual markets are affecting the wider allocation of softwood supply.