{"id":88311,"date":"2024-11-19T07:44:46","date_gmt":"2024-11-19T07:44:46","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/european-sawmills-under-pressure-as-market-conditions-remain-uncertain\/"},"modified":"2025-09-19T09:03:10","modified_gmt":"2025-09-19T09:03:10","slug":"european-sawmills-under-pressure-as-market-conditions-remain-uncertain","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/european-sawmills-under-pressure-as-market-conditions-remain-uncertain\/","title":{"rendered":"European sawmills under pressure as market conditions remain uncertain"},"content":{"rendered":"

<\/span>European sawmillers are continuing to face significant challenges due to ongoing poor market conditions, with expectations of a major boost from the UK Government's ambitious housebuilding agenda proving uncertain. Key industry figures, speaking at Timber Development UK's (TDUK) Global Markets Conference in early November, highlighted the ongoing struggles and market volatility affecting the sector.<\/p>\n

Noble Francis, Economics Editor at the Construction Products Association (CPA), addressed a crowd of 200 industry professionals in London, expressing skepticism over the UK Government\u2019s target of 1.5 million new homes over the next parliamentary period. He described the target as \u201cludicrous,\u201d noting that the construction sector has faced significant workforce losses, with 385,000 fewer workers since the first quarter of 2019.<\/p>\n

While CPA\u2019s forecast remains one of \u201ccautious optimism\u201d for the UK construction sector, its projections show modest growth. UK GDP is expected to increase by 1.1% in 2024, 1.7% in 2025, and 2.3% in 2026. Construction output in 2025 is forecast to grow by 2.5%, with private housebuilding rising by 8%. However, these projections are tempered by a 2.9% contraction in overall construction output in 2024, alongside a 9% decline in private housebuilding.<\/p>\n

Olle Berg, EVP Market\/Sales & Business Development at Setra Group, shared that Swedish, Finnish, and central European sawmillers are continuing to experience severe pressure. The downturn, which began in the second quarter of 2024, is being felt across the sector, and production rates are being kept low. According to Berg, there is little indication that these conditions will improve in the near future, with raw material availability becoming an increasing challenge.<\/p>\n

He warned that this continued strain could lead to restructuring in the Swedish sawmilling industry, as profitability challenges persist. Even if market conditions improve, Berg noted that there would be insufficient material to meet potential increases in demand.<\/p>\n

While optimism remains limited, some recovery is anticipated. Berg forecasts a 5% improvement in European softwood imports in 2025. Additionally, European softwood exports to the US are expected to grow by 20% after a decline of 17% in 2024. However, softwood exports to China have dropped to their lowest levels in 10 years, with the Chinese economy facing fundamental issues.<\/p>\n

The US market is currently seeing healthy levels of softwood consumption, though supply appears to be oversaturated. The North Africa and Middle East markets have emerged as the largest overseas markets for European softwood, with redwood being the predominant product.<\/p>\n

During a panel discussion at the TDUK event, concerns were raised about the overspecification of C24 timber, which has led to the erosion of the C16 grade market. Industry leaders, including Graham Blyth of James Jones and Sons and Mike Glennon of Glennon Brothers, emphasized the need for more support for C16 timber to help stabilize the market.<\/p>\n

Glennon also highlighted the ongoing housing shortage in Ireland, noting that increasing tree planting is crucial for meeting future wood demand. He pointed out the lack of political understanding that in order to build more with wood, more trees must be planted to ensure sustainable supply.<\/p>\n

As European sawmills continue to navigate these challenges, the industry remains under pressure, and any potential market recovery will need to address these ongoing issues.<\/p>","protected":false},"excerpt":{"rendered":"

European sawmillers are continuing to face significant challenges due to ongoing poor market conditions, with expectations of a major boost from the UK Government’s ambitious housebuilding agenda proving uncertain. 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