{"id":88350,"date":"2024-11-30T07:28:56","date_gmt":"2024-11-30T07:28:56","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/tropical-wood-and-panel-markets-strained-recovery-expected-in-2025\/"},"modified":"2025-09-19T09:03:15","modified_gmt":"2025-09-19T09:03:15","slug":"tropical-wood-and-panel-markets-strained-recovery-expected-in-2025","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/tropical-wood-and-panel-markets-strained-recovery-expected-in-2025\/","title":{"rendered":"Tropical wood and panel markets strained, recovery expected in 2025"},"content":{"rendered":"
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The\u00a0Tropical\u00a0Panels and Wood\u00a0Commissions\u00a0, held on November 7, 2024 at MuMa, in Le Havre, drew up a complete inventory of the economic, logistical and regulatory challenges facing these two major sectors. These discussions highlighted common issues while detailing problems specific to each sector. These two meetings brought together around thirty participants: importers, agents, processors, traders and partners in our businesses.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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A market under pressure: Market round-up<\/h4>\n

Panels: A marked decline in the building industry<\/p>\n

The panel sector is severely affected by the crisis in new construction in Europe. Housing starts fell by -13.9% over the year, and building permits fell by 10%, reflecting a structural weakness in the market. Demand for plywood is collapsing, particularly due to the spectacular drop in sales of single-family homes (-29.9%). On the other hand, the renovation and maintenance segment shows relative resilience (+1.7%), supporting moderate activity in certain niches.<\/p>\n

The outlook for 2025 is mixed. Although industrial investments, particularly in Finland, point to a potential revival, uncertainty surrounding overall demand persists. Market players are banking on a gradual stabilisation to avoid further erosion of margins.<\/p>\n

Tropical woods: Logistical challenges and slowdown in demand<\/strong><\/p>\n

The tropical timber market is facing difficult economic conditions and increasing logistical challenges. Imports are suffering from prolonged delays in Brazilian and Asian ports, exacerbated by a shortage of containers and recurring port congestion. Climatic conditions, such as the rainy season in Asia and Brazil, are aggravating these delays, complicating inventory management for importers.<\/p>\n

Some segments, such as the decking and terraces market, are experiencing a gloomy year, while joinery is showing better resilience. Furthermore, gross margins in this sector (BT) continue to decline (-10% to -20%), under pressure from overvalued stocks and high volatility in raw material prices.<\/p>\n

Initiatives to improve logistics infrastructure and strengthen supply chains are gradually emerging. These efforts, combined with better coordination with port authorities, aim to reduce current tensions and stabilise the sector from 2025.<\/p>\n

Logistics: A supply chain under pressure<\/strong><\/p>\n

Logistics tensions continue to weigh heavily on the panel and tropical wood sectors. Delays in Brazilian and Asian ports, combined with a chronic shortage of containers, are significantly extending supply times. These constraints are exacerbated by extremely volatile maritime freight costs: after a temporary stabilisation, unpredictable increases have been observed since November 2024. Trade flows from Asia remain particularly affected by port congestion and seasonal variations, particularly linked to the Chinese New Year and monsoons.<\/p>\n

Faced with these challenges, companies are forced to anticipate their orders more to avoid stock shortages. However, this management is complicated by generally low stocks, as mentioned by several stakeholders. To overcome these difficulties, collective initiatives are emerging, such as strengthening collaboration with port authorities and implementing better coordinated logistics strategies.<\/p>\n

Regulations: A transformation in progress<\/h4>\n

Both sectors are facing increased\u00a0regulatory constraints\u00a0, which are redefining the conditions of access to European markets.<\/p>\n

EUDR: Traceability on the front line<\/strong><\/p>\n