{"id":89068,"date":"2025-07-17T05:05:32","date_gmt":"2025-07-17T05:05:32","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/versowood-to-expand-sawn-timber-capacity-though-cautious-demand-isnt-going-anywhere\/"},"modified":"2025-09-18T17:30:56","modified_gmt":"2025-09-18T17:30:56","slug":"versowood-to-expand-sawn-timber-capacity-though-cautious-demand-isnt-going-anywhere","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/versowood-to-expand-sawn-timber-capacity-though-cautious-demand-isnt-going-anywhere\/","title":{"rendered":"Versowood to expand sawn timber capacity; though cautious, demand isn\u2019t going anywhere"},"content":{"rendered":"

<\/span>Versowood began the first quarter of the year on a positive sales note. Especially within the EU, customers' stock levels were low, and restocking began in anticipation of spring. However, the uncertain market atmosphere brought caution to orders, which was evident in additional purchase needs in February. Although the strong start was expected to carry into the second quarter, expectations turned out to be higher than actual results. As uncertainty increased, purchases were made only as needed.<\/p>\n

\n

\u201cDue to COVID, customers have become cautious. They've learned that conditions can change quickly in either direction. This is now clearly reflected in trade,\u201d says Versowood\u2019s Sales Director Matti Iso-Kuusela.<\/p>\n<\/blockquote>\n

In Finland, hardware stores also stocked up early in the year, and demand was especially strong for treated wood. However, industrial wood users are still idling, and new construction activity is not expected to improve before the end of the year. One positive signal is the increased demand for loans.<\/p>\n

\n

\u201cAs interest rates fall, housing and cottage sales seem to be picking up. I believe yard and renovation construction will grow accordingly and support hardware store sales.\u201d<\/p>\n<\/blockquote>\n

A strong start followed by a slowdown<\/strong><\/p>\n

In Europe, the market pickup was evident in early 2025 through occasional trailer shortages, but despite this, goods moved fairly well. In Germany, demand even came as a surprise. According to Iso-Kuusela, all types of sawn timber are moving, but:<\/p>\n

\n

\u201cI believe yard and renovation construction will grow accordingly and support hardware store sales.\u201d<\/p>\n<\/blockquote>\n

The new year was expected to mark a turning point for the softwood lumber trade, which has been struggling for almost three years. After a strong start, enthusiasm has turned into waiting, with no major shift in sentiment in sight.<\/p>\n

Customer sectors differ in how strong their respective markets appear. Trade in Belgium and the Netherlands has also been brisk. In the Mediterranean\u2014Spain, Italy, and Portugal\u2014construction continues steadily, but after several good years, France has run into difficulties.<\/p>\n

\n

\u201cHousing starts in France are declining, which is now reflected as difficulties in the lumber market.\u201d<\/p>\n<\/blockquote>\n

The Baltics, which have become an important market for Finnish sawmills in recent years and surprised positively with their activity, have now slightly withdrawn. There was clear caution in purchases during the second quarter. This lower trading level may become the norm.<\/p>\n

\n

\u201cThe Baltics have long-standing business ties with Russian players, and Russian sawn timber may regain some market share once sanctions are lifted. However, I believe Baltic customers won\u2019t completely abandon us\u2014they will likely diversify their purchases to include some Finnish suppliers.\u201d<\/p>\n<\/blockquote>\n

As the year approaches its second half, expectations for a strong European market have somewhat deflated. Iso-Kuusela describes the sentiment as \"flat\" but notes that market challenges help Finnish players stay competitive.<\/p>\n

\n

\u201cThe effects of insect damage are now visible, and there is less spruce available in Central Europe and Sweden. This won\u2019t resolve quickly, giving us an opening. Of course, we must also remember that Russia is ready to flood the European market the moment it's allowed.\u201d<\/p>\n<\/blockquote>\n

In Egipt<\/strong>, volumes have steadily increased, but Iso-Kuusela describes the market as two-sided: certain grades sell well, others hardly at all. Nevertheless, Versowood has managed to grow both its volumes and customer base there. A similar situation exists in Algeria<\/strong>, from which rumors have emerged that the country may abandon import licenses. If that happens, Iso-Kuusela anticipates some degree of a buying rush. In Morocco<\/strong>, the market has remained stable. Signs of a construction boost come from the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal. Among other things, the world\u2019s largest football stadium is expected to be built there.<\/p>\n

In Israel<\/strong>, the hoped-for economic activity after a ceasefire has remained muted. Ongoing uncertainty about the ceasefire\u2019s duration and labor shortages are slowing a return to normal operations.<\/p>\n

Iso-Kuusela refers to China<\/strong> as a \"problem child\"\u2014and the statistics confirm it:<\/p>\n

\n

\u201cIn the current fiscal year, we've delivered half the volume to China compared to the previous one. Construction there is minimal, and lumber consumption is nearly paralyzed. What little is used comes from Russia, making prices long unprofitable for Europeans.\u201d<\/p>\n<\/blockquote>\n

\n

\u201cTrade with China will likely stay at rock-bottom levels for several years, which is unfortunate because it\u2019s an important market for us. For now, though, we\u2019ve been able to redirect Chinese volumes to Europe.\u201d<\/p>\n<\/blockquote>\n

The Japanese<\/strong> market, long considered stable and reliable, has been melting away for the past few years. Like in many other countries, housing starts have been declining. Despite this, Versowood has managed to increase its market share. Falling inventory levels at the end of 2024 finally turned things around, and starting from Q1, glulam exports to Japan have returned to nearly normal levels.<\/p>\n

Focus on our own operations<\/strong><\/p>\n

Versowood\u2019s sawn timber production will increase by nearly 100,000 cubic meters in the new fiscal year, reaching around 1.5 million cubic meters. According to Iso-Kuusela, growth in volume will come from in-house processing, expanding current customer relationships, and new markets. However, he has little to say about near-term market developments:<\/p>\n

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\u201cSince 2022, the market has been hazy and uncertain to varying degrees. News from around the world, breath-holding, and premature dramatization have all influenced trade\u2014maybe too much. But the need for sawn timber isn\u2019t going anywhere. At Versowood, we\u2019re now focusing on our own operations and waiting for the markets to normalize.\u201d \u2022<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"

Versowood began the first quarter of the year on a positive sales note. Especially within the EU, customers’ stock levels were low, and restocking began in anticipation of spring. However, the uncertain market atmosphere brought caution to orders, which was … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":49943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-89068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nVersowood to expand sawn timber capacity; though cautious, demand isn\u2019t going anywhere - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/versowood-to-expand-sawn-timber-capacity-though-cautious-demand-isnt-going-anywhere\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Versowood to expand sawn timber capacity; though cautious, demand isn\u2019t going anywhere - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Versowood began the first quarter of the year on a positive sales note. 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