Recent trends reveal a slowdown in the French construction market, increased demand for specific wood types, and shifting international trade patterns affecting the wood industry<\/p>\n
The National Forestry Office (ONF) of France has recently published a report on the evolution of wood sales produced and harvested in France. It states that \"the crisis in the new construction market continues, with a decrease of about 20% in France and the United States between May 2023 and May 2024. Transactions in the existing housing market have also declined by 22% in France between April 2023 and April 2024,\" which reduces opportunities in new construction. On the other hand, \"the economic crisis and savings reserves have led to an increase in improvement projects such as facade cladding, roof extensions, additions, and terrace renovations\" in the sector of older single-family homes.<\/p>\n
This trend is observable in cities in \u00cele-de-France and beyond, particularly in older residential areas. For instance, in Colombes, a city of 80,000 inhabitants in the Hauts-de-Seine, a third of the housing consists of single-family homes whose market value has significantly increased over the past four decades. Many of these homes are currently undergoing transformations, often involving the addition of an extra floor.<\/p>\n
According to the ONF report, this increased demand for wood is benefiting the construction softwood sector, particularly Douglas fir, which is highly sought after by architects. France, being the largest European producer of this wood, is seeing a positive trend that should continue once the highly demanding U.S. market recovers. With the development of new wood uses, such as building insulation, alongside traditional uses like pulp, panel production, and pellets, the demand for industrial wood is increasing.<\/p>\n
French ash processed in Vietnam<\/strong><\/p>\n According to the ONF, \"there is still strong international demand for ash. Once treated at high temperatures, it is especially valued for bathroom flooring. Vietnam, which has surpassed China in furniture production, is also keen on French ash.\" Thus, France continues to export whole logs to low-cost labor countries, which then export a significant amount of furniture back to France and other EU member states. While prices for fir and spruce logs have fallen by 10% over the past year due to an oversupply of trees affected by bark beetles, the price of ash has increased by 10% between June 2023 and June 2024. Short-term calculations continue to prevail, especially as the ONF is incentivized to self-finance through wood sales due to insufficient annual funding from the state.<\/p>\n However, this approach does not effectively contribute to mitigating ongoing climate change. The ONF report also notes that \"international demand for beech remains strong, driving up prices. Outside the Pyrenean massif, where demand remains limited, mountain beech (from the Alps and Jura) is of high interest in countries where the price of energy wood has increased more than in France.\" Thus, the market operates based on supply and demand. Yet, this market offers no long-term perspective on carbon storage by trees. Until the mid-20th century in France, beech trunks were primarily used to produce wooden clogs worn by adults and children in the countryside. These clogs disappeared in less than two decades, replaced by rubber boots.<\/p>\n Whiskey and wine boost oak barrel demand<\/strong><\/p>\n Oak for cooperage remains strong, especially produced in central France. Its wood is valued for making barrels used for aging wine and spirits before bottling. According to the ONF, this wood is not experiencing a crisis and maintains high prices due to new opportunities. While the economic downturn has reduced demand from Latin American wine-producing countries, global enthusiasm for brown and woody spirits has introduced new buyers. The UK, Mexico, and Japan are driving demand for oak barrels for their whiskies, tequilas, and premium sakes. Additionally, California continues to seek new barrels for its wines, with rising prices, as stated in this \"Economic Briefing No. 13\" from the National Forestry Office.<\/p>","protected":false},"excerpt":{"rendered":" Recent trends reveal a slowdown in the French construction market, increased demand for specific wood types, and shifting international trade patterns affecting the wood industry The National Forestry Office (ONF) of France has recently published a report on the evolution … Continue reading