{"id":82856,"date":"2022-09-06T09:14:13","date_gmt":"2022-09-06T09:14:13","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/frances-softwood-sawmills-report-significant-market-slowdown\/"},"modified":"2025-09-19T08:58:10","modified_gmt":"2025-09-19T08:58:10","slug":"frances-softwood-sawmills-report-significant-market-slowdown","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/frances-softwood-sawmills-report-significant-market-slowdown\/","title":{"rendered":"France’s softwood sawmills report significant market slowdown"},"content":{"rendered":"
\n

At the start of September, many sawmill owners in France are asking themselves questions about the evolution of the markets, in particular those specializing in construction timber.\u00a0In this sector, the negative signals that appeared in June and July have now been confirmed.<\/span><\/p>\n

It must be said that the general context does not lead to optimism.\u00a0Since the start of the year, timber flows have slowed down sharply on world markets, down 20% on average:\u00a0China (-42%) and India (-14%) are the 2 countries most affected by the reduction in imports which concerns most international markets.<\/span><\/p>\n

The reality is that global economic activity is running out of steam.\u00a0In addition, the financial context is worrying because the debt of the global financial structure has reached astronomical levels: since January 2020, the main central banks have injected 9,000 billion US $ of credit at almost zero rates.\u00a0The risk of seeing this financial bubble burst cannot be ruled out.\u00a0While interest rates are starting to rise sharply, inflation is only galloping.\u00a0Wages do not follow and consumption suffers.<\/span><\/p>\n

In the USA, where inflation reached 9.1% in June 2022, construction is beginning to decline (-7% in building permits for private housing in April-May 2022).\u00a0The fall in housing starts is impacting the US softwood market with prices clearly on the downside: over the last 6 months (to July 2022), prices for softwood lumber has fallen by 57%, those for OSB panels - 72%.<\/span><\/p>\n

In France, the situation is hardly better (+6.1% inflation in July 2022).\u00a0In the second<\/span>\u00a0quarter of 2022, the number of authorized dwellings fell by 9.5% compared to the first 3 months of the year.\u00a0However, this level of activity is still higher (+11.2%) than the average recorded during the 12 months preceding the Covid crisis (March 2019 to February 2020).\u00a0Regarding housing starts, the situation is not better: over the same period, housing starts fell by 5% (after an initial decline of 0.6% in the first\u00a0<\/span>quarter of 2022).<\/span><\/p>\n

Under these conditions, it is not really surprising that French softwood sawmills specializing in construction products have faced a significant drop in orders since the start of the summer.\u00a0<\/span><\/p>\n

\n

\"We are indeed seeing a marked deterioration in our order books as if our customers were in a situation of overstock after running out of material\"<\/em>\u00a0, confirms a sawmill owner from the east of France.<\/span><\/p>\n<\/blockquote>\n

But the concern of professionals does not lie solely in the contraction of the French market.\u00a0The element that could further destabilize the current fragile balance comes from abroad.\u00a0With less trade on world markets and especially less activity in the USA, the major German, Austrian, Baltic and Scandinavian manufacturers are returning to Europe.\u00a0If this trend is confirmed and amplified, we can therefore expect more competition in France and therefore new pressure on sawn softwood prices by the end of the year.<\/span><\/p>\n

These have just experienced a significant price reduction during the summer.\u00a0On standard fir-spruce lumber, this has been around 15% over the last three months.\u00a0Assortments which were trading at almost 350 euros\/m3 at the beginning of spring are now starting below 300 euros\/m3 (see table below).\u00a0In more elaborate products (for example lamellae for bonding), the price drop was 20% in two months.<\/span><\/p>\n

The question is how much French sawmills can withstand a price devaluation.\u00a0Because, today, the market has changed considerably.\u00a0The value of softwood logs returned to a very high level in the first half of 2022.<\/span>\u00a0<\/span>But, at the same time, the decline in orders and prices set in.\u00a0In addition, spending has risen sharply, particularly for electricity,\u00a0but also for other items (oil, metals, transport, etc.).\u00a0In a context of persistent inflation, and if the depression in the markets is confirmed, softwood sawyers will have to manage a difficult situation in the coming months.<\/span><\/p>\n

Prices of sawn softwood in France<\/span><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n\n

Q2 2020<\/span><\/strong><\/p>\n<\/td>\n

\n

Q2 2021<\/span><\/strong><\/p>\n<\/td>\n

\n

Q1 2022<\/span><\/strong><\/p>\n<\/td>\n

\n

\u00a0\u00a0 \u00a0\u00a0<\/span>Change in %<\/span><\/strong>\u00a02020-2022<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Spruce<\/span><\/strong><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Quality 2<\/span><\/p>\n<\/td>\n

\n

203<\/span><\/p>\n<\/td>\n

\n

238<\/span><\/p>\n<\/td>\n

\n

320<\/span><\/p>\n<\/td>\n

\n

+58%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Quality 3<\/span><\/p>\n<\/td>\n

\n

155<\/span><\/p>\n<\/td>\n

\n

194<\/span><\/p>\n<\/td>\n

\n

257<\/span><\/p>\n<\/td>\n

\n

+66%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Maritime pine<\/span><\/strong><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Quality 2<\/span><\/p>\n<\/td>\n

\n

225<\/span><\/p>\n<\/td>\n

\n

257<\/span><\/p>\n<\/td>\n

\n

340<\/span><\/p>\n<\/td>\n

\n

+51%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Quality 3<\/span><\/p>\n<\/td>\n

\n

178<\/span><\/p>\n<\/td>\n

\n

225<\/span><\/p>\n<\/td>\n

\n

258<\/span><\/p>\n<\/td>\n

\n

+45%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Douglas fir<\/span><\/strong><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Quality 2<\/span><\/p>\n<\/td>\n

\n

225<\/span><\/p>\n<\/td>\n

\n

309<\/span><\/p>\n<\/td>\n

\n

399<\/span><\/p>\n<\/td>\n

\n

+77%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Since the end of the second\u00a0<\/em><\/span>quarter of 2022, activity has fallen in construction timber,\u00a0<\/em><\/span>especially in spruce and Douglas fir where orders and prices fell;\u00a0<\/em>at the beginning of September 2022, the price reduction in spruce-fir is estimated at 15%.<\/em><\/p>\n<\/div>\n

<\/h2>","protected":false},"excerpt":{"rendered":"

At the start of September, many sawmill owners in France are asking themselves questions about the evolution of the markets, in particular those specializing in construction timber.\u00a0In this sector, the negative signals that appeared in June and July have now … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3538,3348,3352,3432],"class_list":["post-82856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-france","tag-sawmills","tag-softwood","tag-softwood-lumber","topic-forestry","topic-industry-prices","topic-sawmilling","topic-wood-construction","area-europe"],"acf":[],"yoast_head":"\nFrance's softwood sawmills report significant market slowdown - 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