Global Wood Markets Info spoke this month with sawmills, traders, importers, distributors and market participants across Europe and North America. Market conditions remain mixed as buyers continue to keep inventories low while producers face rising raw material and transportation costs. Many participants report that demand remains below normal levels across several construction-related sectors, although concerns about future supply availability are becoming more frequent. Geopolitical developments, freight costs and log prices continue to influence purchasing decisions throughout the timber supply chain. Below are selected market comments and observations collected during recent weeks.<\/p>\n
Supply is not getting any easier<\/strong><\/p>\n \u201cDemand is still far from strong, but log availability remains tight in many regions. If demand improves, supply could become a problem very quickly.\u201d \u2013 European timber trader<\/p>\n \u201cMany sawmills are operating with little flexibility. There is less spare production capacity in the system than most buyers think.\u201d \u2013 Nordic lumber trader<\/p>\n \u201cThe market is not short of wood today, but it would not take much to change the situation.\u201d \u2013 European importer<\/p>\n \u201cPeople spent the last two years talking about weak demand. Now more conversations are starting to focus on future supply.\u201d \u2013 Timber market participant<\/p>\n Freight and geopolitics are creating uncertainty<\/strong><\/p>\n \u201cTransportation costs have increased again and this is affecting delivered prices across multiple markets.\u201d \u2013 European distributor<\/p>\n \u201cMany customers are becoming more concerned about delivery reliability than they were six months ago.\u201d \u2013 International timber trader<\/p>\n \u201cGeopolitical developments are making long-term planning increasingly difficult. Nobody has much visibility beyond the next few months.\u201d \u2013 Wood products importer<\/p>\n \u201cThe market does not like uncertainty, and right now there is plenty of it.\u201d \u2013 European market participant<\/p>\n Panel products continue to outperform lumber<\/strong><\/p>\n \u201cPlywood and panel markets are holding up better than most lumber products at the moment.\u201d \u2013 Wood products trader<\/p>\n \u201cWe are moving panel volumes more easily than we were last year and pricing is generally healthier.\u201d \u2013 European distributor<\/p>\n \u201cThere are some signs of improvement in engineered wood products, but buyers remain cautious.\u201d \u2013 Engineered wood market participant<\/p>\n \u201cMass timber continues to attract interest even while traditional construction markets remain slow.\u201d \u2013 Building products supplier<\/p>\n Construction demand remains uneven<\/strong><\/p>\n \u201cMany customers are still buying only for immediate needs and avoiding large inventory positions.\u201d \u2013 European importer<\/p>\n \u201cThe UK market remains difficult. Activity is there, but confidence is still missing.\u201d \u2013 Scandinavian exporter<\/p>\n \u201cProjects continue moving forward, but decision-making is slower than normal.\u201d \u2013 Timber distributor<\/p>\n \u201cMost buyers are taking a wait-and-see approach whenever possible.\u201d \u2013 European trader<\/p>\n Margins remain under pressure<\/strong><\/p>\n \u201cLog prices are still high and sawmills are struggling to recover all of those costs in finished products.\u201d \u2013 Softwood lumber trader<\/p>\n \u201cStable lumber prices may look positive from the outside, but margins remain very tight.\u201d \u2013 European sawmill source<\/p>\n \u201cCost inflation has not disappeared. Energy, labour and transport continue to put pressure on producers.\u201d \u2013 Timber industry executive<\/p>\n \u201cMany companies are focusing more on protecting margins than chasing volume.\u201d \u2013 European distributor<\/p>\n Reliability matters more than ever<\/strong><\/p>\n \u201cPrice is important, but consistency and delivery performance are becoming even more important for customers.\u201d \u2013 International timber trader<\/p>\n \u201cBuyers want suppliers who can deliver exactly what was ordered and on time.\u201d \u2013 Wood products importer<\/p>\n \u201cThe cheapest offer is not always the most competitive offer once delays and quality issues are considered.\u201d \u2013 Timber distributor<\/p>\n \u201cIn uncertain markets, reliability becomes a major advantage.\u201d \u2013 European lumber trader<\/p>","protected":false},"excerpt":{"rendered":" Global Wood Markets Info spoke this month with sawmills, traders, importers, distributors and market participants across Europe and North America. Market conditions remain mixed as buyers continue to keep inventories low while producers face rising raw material and transportation costs. … Continue reading