{"id":86834,"date":"2023-10-03T08:37:21","date_gmt":"2023-10-03T08:37:21","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/modest-growth-forecast-for-european-wood-market\/"},"modified":"2025-09-19T09:00:48","modified_gmt":"2025-09-19T09:00:48","slug":"modest-growth-forecast-for-european-wood-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/modest-growth-forecast-for-european-wood-market\/","title":{"rendered":"Modest growth forecast for European wood market"},"content":{"rendered":"

Economic growth in Europe has slowed dramatically in Europe this year and the downturn is likely to persist. European hardwood production has fallen under pressure from both declining volume and quality of log supply and with weak consumption in the European construction and furniture sectors.<\/span><\/p>\n

European wood panel production and consumption is also down compared to the period during and immediately following the COVID lockdowns. However, in this sector, performance is still up compared to the pre-COVID period, having received a boost from green policy measures in the region.<\/p>\n

Longer term, the future direction of supply and demand in the European region is likely to be strongly influenced by introduction of the EU Deforestation Regulation (EUDR), due to be enforced from start of 2025. These are key messages contained in the advanced draft of the Market Statement due to be considered at the joint session UN ECE Committee on Forests and the Forest Industry and the FAO European Forestry Commission to be held in San Marino between 20th and 23rd November 2023.<\/p>\n

According to the Statement, \u201ceconomic growth in Europe decelerated markedly in 2022 as the post-pandemic recovery ran out of steam\u201d and \u201cthe pace of economic expansion in the ECE region is expected to decelerate further in 2023\u201d. It is noted that \u201csome factors that depressed economic performance earlier started to ease in mid-2023. The fall of headline inflation, driven by declining energy prices, easing supply bottlenecks and the reopening of China define a more auspicious outlook\u201d.<\/p>\n

However, the Statement goes on to suggest that \u201cthe pickup is likely to be rather modest, with growth rates in 2024 remaining well below average pre-pandemic levels. Also, that \u201cthe impact of monetary policy tightening will be more strongly felt, dampening the growth of demand\u201d. In addition to undermining consumer confidence, \u201chigher financing costs are increasing the burden of servicing government debt\u201d. This in turn is \u201cadding to the pressures for fiscal consolidation, after the increase in expenditures resulting from the COVID-19 pandemic and the support provided to offset the impact of high energy prices\u201d.<\/p>\n

The Statement notes that European sawn hardwood production and consumption decreased respectively by 8.8% and 8.9% to 13.4 and 12.9 million m3 in 2022. All large producing countries such as France, Germany, Romania and Tu\u0308rkiye reported significant declines in production. Oak processors in Europe were facing stiff competition for raw material, notably from buyers in China, resulting in high prices for sawlogs.<\/p>\n

Sawmills specializing in beech sawnwood production faced competition for raw material with the fuelwood producers for a short period at the end of 2022. Beech sawlogs in Europe are further reported to have quality issues that are likely caused by the droughts in the past five years.<\/p>\n

European wood-based panels production is reported to have decreased by 5.1% to 77.4 million m3 in 2022 due to the energy crunch in Europe and its consequences on consumer confidence and the general economic situation. Ninety per cent of the drop in output took place in the second half of 2022 and reflected the decline in furniture output and construction production.<\/p>\n

However, European wood panels production in 2022 was still 5% higher than in 2019, before COVID. The long- term outlook in this sector also \u201cremains favourable thanks to political support for programmes in the European subregion such as the European Green Deal, the European Renovation Wave and the New European Bauhaus\u201d.<\/p>\n

On EUDR, the Statement notes that the regulation \u201cwill require significant resources and cooperation among all stakeholders at all levels of commodities\u2019 trade inside and outside the EU. Reactions to this legislation from non-EU countries included a letter from the Ambassador of Canada to the EU raising concerns related to the geolocation coordinates requirements in the regulation, the definitions used for deforestation-free and degradation, and the potential risk of negatively impacting bilateral trade on commodities addressed under the EUDR\u201d.<\/p>","protected":false},"excerpt":{"rendered":"

Economic growth in Europe has slowed dramatically in Europe this year and the downturn is likely to persist. 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