{"id":75729,"date":"2018-05-31T11:50:49","date_gmt":"2018-05-31T11:50:49","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/oak-market-in-eu-countries-is-under-a-lot-of-tension\/"},"modified":"2025-09-19T08:48:10","modified_gmt":"2025-09-19T08:48:10","slug":"oak-market-in-eu-countries-is-under-a-lot-of-tension","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/oak-market-in-eu-countries-is-under-a-lot-of-tension\/","title":{"rendered":"Oak market in EU countries is under a lot of tension"},"content":{"rendered":"

EU countries hit hardest by the Ukrainian ban, says the European Organisation of Sawmill Industries (EOS), are Romania, Slovakia, Poland and Austria, which between them in 2014 imported 1.4 million cu.m of Ukrainian roundwood.<\/em><\/p>\n

At the same time, the European industry has faced temporary oak log and green lumber transit and export controls in Croatia. These were introduced last summer, ostensibly to prevent the spread of oak lace beetle (corythucha arcuata).<\/p>\n

Raw timber was estimated to have accounted for a third of Croatia\u2019s total \u20ac1.09 billion wood exports in 2016 and the export ban is reported to have left sawmill customers in the rest of the EU, notably Italy, short of material. It is also said to be causing green timber bottlenecks as, despite increased investment in kilning, including from Italian sawmillers, the Croatian industry does not have enough drying capacity to handle previously exported material.<\/p>\n

Increasing wider EU concern about Croatia\u2019s move have been reports in its press that the ban will assist its domestic processing and manufacturing sectors by reducing competition for raw materials, implying this was part of the original motivation.<\/p>\n

The result of this combination of factors has been oak price rises, especially for logs.<\/span><\/p>\n

\u201cWhile lumber has risen 20% in three years, log prices have increased by 40%,<\/em>\u201d said export sales manager MarieTh\u00e9r\u00e8se Carrey of French hardwood mill Euroch\u00eane.<\/p>\n

And the upward trend looks set to continue, according to one EU trader-importer. \u201cWe\u2019re currently seeing European oak rising around 5% every six months, with 26mm-40mm dimensions under particular pressure<\/em>\u201d he said.<\/p>\n

All these issues were addressed at the European Oak Conference, hosted in London by the UK Timber Trade Federation on 19 April, and a capacity audience of 110- plus delegates from the UK and the rest of Europe underlined the intense trade interest.<\/p>\n

The opening address came from\u00a0Silvia Melegari, Secretary General of the EOS, whose 35,000-sawmill membership in 13 countries represents 77% of all European sawn wood output. She underlined the seriousness of the raw materials situation facing EOS members, particularly due to Chinese demand.<\/p>\n

Various ingredients had come together recently, she maintained, to heighten China\u2019s appetite for roundwood hardwood of all types (with its imports jumping from 14.3 million tonnes in 2016 to 16.5 million tonnes in 2017), but particularly oak. Its domestic market for timber goods has been expanding rapidly. At the same time, it has further reduced its own natural forest harvest and cut VAT on log imports.<\/p>\n

\u201cWe\u2019ve seen overall European sawn oak exports to China rise 34% in the last seven years, but log exports have increased 244% in the same period,\u201d said Ms Melegari. \u201cAnd in 2010 63% of oak roundwood exported from EU countries was consumed in other EU countries. In 2017 50% was exported outside the EU, with 42% destined for China.\u201d<\/em><\/p>\n

She did not draw a direct connection with roundwood exports, but also stated that 30% of French, Belgian and German hardwood sawmills had closed in the last 10 years.<\/p>\n

While the\u00a0EOS\u00a0acknowledges it is difficult to dissuade forest owners from selling logs to the highest bidder, it is actively lobbying national and EU governments to support the European hardwood sawmill sector. A group of MEPs had written a letter to European Commission President Jean-Claude Juncker on the topic and urged an EU action plan for the industry.<\/p>\n

An appeal has also been made via the European Economic and Social Committee requesting measures \u201cto ensure wood supply from the region\u2019s forests is sufficient to satisfy local industry needs on a sustainable basis\u201d.<\/em><\/p>\n

The EU, said Ms Melegari, was also continuing to pursue legal proceedings over its decade-long log export ban against Ukraine, where oak comprises 28% of the forest, second only to pine at 35%. Partly as a response to the measure it has now blocked payment of the \u20ac600 million final tranche of a package of \u2018macro financial assistance\u2019.<\/p>\n

However, speaking at the\u00a0European Oak Conference\u00a0on behalf of the Ukrainian Association of Wood Processors, trade journalist\u00a0Vasyl Masyuk\u00a0said the export ban was unlikely to be dropped. It was popular in his country\u2019s timber and timber using sectors and there were concerns that without it, Ukraine risked becoming primarily a raw materials supplier to the EU and Asia.<\/p>\n

This echoed reported comments from Liudmyla Hurina of the same organisation. \u201cSince the ban, Ukraine\u2019s wood processing figures have grown by 15% and furniture companies\u2019 by 12%, while the export of processed lumber has risen by 12%,\u201d she said.<\/p>\n

Other EU producers also gave their market perspective at the conference. Rafa\u0142 Gruszczy\u0144ski of the Polish Economic Chamber of Commerce said his country\u2019s mills, previously key importers of Ukrainian oak logs, were hit by high raw material prices and shortages.<\/p>\n

He added, however, that the complexity of Poland\u2019s log auction system was likely a deterrent to export buyers, notably in China. Polish sawn oak exports last year were around 85,000m3, of which 29% each went to Slovakia and Austria, 18% to Germany and 1% to China.<\/p>\n

Jean-Fran\u00e7ois Guilbert, Managing Director of the French Timber promotional body, said 2017 French sawn oak output had been relatively strong at 615,000m3, with buoyant domestic demand from the railway, flooring, joinery, furniture and barrel industries.<\/p>\n

However, according to Mr Guilbert, rising oak lumber prices were not offsetting more sharply increasing raw materials costs and oak log exports to China remained a worry. In 2007 they comprised just 7% of the French harvest, he said. Last year they hit 23%.<\/p>\n

Some traders report a degree of European market migration to other hardwood species due to European oak price and supply pressure. These include European and American ash, and US white oak, although the latter is also characterised by growing global demand, including of course from China, and upward price pressure.<\/p>\n

In what one trader described as\u00a0\u2018the oak obsessed European market\u2019<\/em>, the American Hardwood Export Council (AHEC) also sees opportunities for the US red variety of the species. This has not been anything like as popular with European specifiers as US white or European oak, but there\u2019s belief current market pressures could change that.<\/p>","protected":false},"excerpt":{"rendered":"

EU countries hit hardest by the Ukrainian ban, says the European Organisation of Sawmill Industries (EOS), are Romania, Slovakia, Poland and Austria, which between them in 2014 imported 1.4 million cu.m of Ukrainian roundwood. At the same time, the European … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3299,3503,3828,3286],"class_list":["post-75729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-europe","tag-oak","tag-oak-lumber","tag-prices","topic-forestry","topic-sawmilling","area-europe"],"acf":[],"yoast_head":"\nOak market in EU countries is under a lot of tension<\/title>\n<meta name=\"description\" content=\"EU countries hit hardest by the Ukrainian ban, says the European Organisation of Sawmill Industries (EOS), are Romania, Slovakia, Poland and Austria.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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