Global Wood Markets Info reviewed recent discussions with sawmill operators, lumber traders, distributors and industry executives across Europe and North America. While individual markets continue to differ, one theme is becoming increasingly clear: weak demand is no longer the only force shaping the market.

Construction remains subdued across most of Europe. Buyers continue purchasing cautiously, inventories are low and orders remain concentrated on immediate requirements. Yet the supply side is also changing. Sawmill capacity is being reduced, production is increasingly disciplined and sawlog costs remain high in several important producing regions.

This is creating an unusual situation. Demand remains too weak to generate a sustained increase in softwood lumber prices, but supply is becoming less flexible at the same time.