{"id":99846,"date":"2026-09-07T06:07:54","date_gmt":"2026-09-07T06:07:54","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=99846"},"modified":"2026-09-07T16:39:51","modified_gmt":"2026-09-07T16:39:51","slug":"klagenfurt-2026-europes-timber-market-is-not-short-of-wood-it-is-short-of-demand-and-money","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/klagenfurt-2026-europes-timber-market-is-not-short-of-wood-it-is-short-of-demand-and-money\/","title":{"rendered":"Klagenfurt 2026: Europe\u2019s timber market is not short of wood \u2013 it is short of demand and money"},"content":{"rendered":"<p>The 58th International Timber Fair in Klagenfurt brought together more than 500 exhibitors and 22,000 trade visitors at a moment when Europe\u2019s timber industry is producing enough wood but struggling to sell it at margins that justify current raw-material, energy and financing costs. GWMI attended the four-day event, where conversations with sawmill operators, timber traders, equipment suppliers and construction companies pointed to a market that has stabilised at a low level rather than entered a genuine recovery.**<\/p>\n<p>Global Wood Markets Info was present throughout the four-day event, following the market discussions inside the exhibition halls and at the International Timber Day.<\/p>\n<p>There was no sense of panic in Klagenfurt, but there was equally little evidence of a broad return in demand. Softwood lumber prices were described as relatively calm, roundwood was generally available, and customers continued to purchase. What has disappeared is confidence in longer forward positions. Buyers are covering immediate requirements, mills are reluctant to build stocks, and machinery investments are being judged against financing costs and uncertain capacity utilisation rather than against ambitious growth forecasts.<!--more--><\/p>\n<p>The clearest conclusion from the fair was that Europe\u2019s wood market is not facing one single downturn. Roundwood trade is more active than the market for processed construction timber; Germany is absorbing more Austrian engineered wood while cutting purchases of Austrian softwood lumber; Italian residential construction is declining while public and non-residential timber projects are expanding; and overseas outlets that previously absorbed surplus European production have become less dependable because of conflict, freight costs and payment risks.<\/p>\n<p><strong>Klagenfurt remained busy, but investment decisions were cautious<\/strong><\/p>\n<p>The fair attracted more than 22,000 trade visitors between September 2 and 5, with over 500 exhibitors from around 20 countries occupying 50,000 m\u00b2. Approximately half of those surveyed were involved in procurement, investment or corporate decisions. This gave the exhibition a commercially serious audience, although footfall did not automatically translate into immediate equipment orders.<\/p>\n<figure id=\"attachment_43178\" aria-describedby=\"caption-attachment-43178\" style=\"width: 640px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.globalwoodmarketsinfo.com\/wp-content\/uploads\/2026\/09\/ht.jpeg\"><\/a><figcaption id=\"caption-attachment-43178\" class=\"wp-caption-text\">International Timber Day 2026 brought the main timber market trends into focus at the Klagenfurt fair.<\/figcaption><\/figure>\n<p>Forestry machinery attracted the greatest interest, followed by sawmill and drying technology. Discussions around scanners, automation, optimisation software and energy-efficient drying were not driven only by plans to increase output. Many mills are now looking for ways to reduce labour requirements, improve lumber recovery, lower drying costs and make production more flexible without adding large amounts of nominal capacity.<\/p>\n<p>In discussions with Global Wood Markets Info, exhibitors described serious interest in new technology, but also longer approval periods and stricter return-on-investment requirements.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Klagenfurt 2026 indicator<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Result<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Trade visitors<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">More than 22,000<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Exhibitors<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">More than 500<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Countries represented by exhibitors<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Around 20<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Exhibition area<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">50,000 m\u00b2<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Visitors interested in forestry products and machinery<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">49.0%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Sawmill and drying technology<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">42.2%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Woodworking and carpentry supplies<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">37.0%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Transport, forklifts, cranes and logistics<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">32.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The strong interest in forestry equipment also matched the current difference between the roundwood and lumber markets. Austrian timber traders reported positive activity in roundwood, while demand for processed wood used in construction remained low. This is an uncomfortable combination for sawmills: logs are moving and retaining value, but the finished product market does not provide the same pricing power.<\/p>\n<p><strong>Austrian lumber production slips toward 9.3 million m\u00b3<\/strong><\/p>\n<p>Austria\u2019s sawmill industry expects softwood and hardwood lumber production to decline slightly to approximately 9.3 million m\u00b3 in 2026, compared with 9.6 million m\u00b3 in 2025. Production has recovered from the sharp decline recorded in 2023, but the industry is still operating in a market where revenue increases have not kept pace with costs.<\/p>\n<figure id=\"attachment_43179\" aria-describedby=\"caption-attachment-43179\" style=\"width: 640px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.globalwoodmarketsinfo.com\/wp-content\/uploads\/2026\/09\/klagenfur.jpg\"><\/a><figcaption id=\"caption-attachment-43179\" class=\"wp-caption-text\">The International Timber Fair in Klagenfurt brought together more than 500 exhibitors and 22,000 trade visitors from across the wood industry.<\/figcaption><\/figure>\n<p>Raw material, energy, labour and logistics remain expensive. Austria\u2019s unit labour costs have risen faster than in other European countries, according to the Austrian Wood Industries Association, while mills have limited scope to transfer those increases to customers. The sector\u2019s earnings remain under pressure even where output has stabilised.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Austrian sawmill industry<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">2025<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">2026 outlook<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Lumber production<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">9.6 million m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Around 9.3 million m\u00b3<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Production value<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u20ac3.1 billion<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Not available<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Companies<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\" colspan=\"2\">More than 1,000<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Employment<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\" colspan=\"2\">Around 10,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Markus Schm\u00f6lzer, chairman of the Austrian sawmill industry, said weak demand, high costs and the growing density of regulation were damaging the competitiveness of Austrian production. He saw no genuine reversal in structural construction, while international conflicts were adding cost and uncertainty to already fragile supply chains.<\/p>\n<p>The mood among mills was therefore defensive rather than expansionary. Capacity is available, but there is little reason to run every line at its technical maximum if the additional lumber must be sold into a poorly financed construction market. Maintaining liquidity, matching production to confirmed orders and limiting inventory remain more important than defending market share through volume alone.<\/p>\n<p><strong>Softwood lumber exports fall across Austria\u2019s principal markets<\/strong><\/p>\n<p>Austria\u2019s export figures provided one of the clearest measurements of the weakness discussed at Klagenfurt. Softwood lumber exports in January\u2013May 2026 were almost 11% below the same period of 2025.<\/p>\n<p>The export figures presented in Klagenfurt confirmed what market participants told GWMI during the fair: customers continue to buy, but in smaller volumes, with shorter commitments and little appetite for speculative inventory.<\/p>\n<p>The decline was not confined to distant or secondary destinations. Shipments to Italy, Austria\u2019s largest market, fell by approximately 4.5%, while exports to Germany dropped by slightly more than 10%. Deliveries to the Middle East contracted by around 24%.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Austrian softwood lumber exports, Jan\u2013May 2026<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Change year on year<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Market reading<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">All destinations<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Nearly \u221211%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Broad export contraction<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Italy<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Around \u22124.5%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Demand continues, but buyers remain cautious<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Germania<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Slightly more than \u221210%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Weak conventional construction demand<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Middle East<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">Around \u221224%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Conflict, freight and payment risks<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The Middle East had previously helped Austrian producers diversify away from Europe\u2019s weak building markets. That outlet became much less reliable after the military escalation in the Persian Gulf. According to Franz Teuschler, chairman of the Austrian timber trade, container transport costs in some cases rose to six times their earlier level once war-risk surcharges were added.<\/p>\n<p>A cargo can still be commercially attractive at the mill gate and become uncompetitive by the time freight, insurance and financing are included. The problem is no longer only the price at which a customer is willing to buy lumber. It is whether the route remains available, whether the landed cost is acceptable and whether payment can be secured.<\/p>\n<p>This contraction in overseas sales sends more European lumber back toward a domestic market that is already adequately supplied. It also reduces mills\u2019 ability to manage grades and dimensions by distributing products across destinations with different specifications. The result is greater competition for individual orders and less room to increase prices.<\/p>\n<p><strong>Supply is not the problem; financing is<\/strong><\/p>\n<p>The question repeatedly raised by forest owners was whether sufficient roundwood would be available through autumn and winter. The answer delivered at the market discussions was measured: Austrian supply is expected to remain adequate, supported in some regions by salvage logging after storm and pest damage.<\/p>\n<p>No abrupt roundwood shortage was forecast, and there was no expectation of either a dramatic price increase or a collapse. The more serious constraint is financing. Higher borrowing costs affect sawmills, timber merchants, construction companies, developers and private buyers simultaneously.<\/p>\n<p>When developers cannot finance projects on workable terms, lumber demand does not disappear immediately. It is postponed, reduced or divided into smaller orders. Timber merchants then avoid restocking beyond near-term requirements. Sawmills receive less forward visibility and become less willing to buy logs aggressively. Machinery suppliers face longer decision periods because investments must be justified against uncertain utilisation rates.<\/p>\n<p>The financial bottleneck also helps explain why stable lumber prices should not be mistaken for a healthy market. Prices can remain calm because mills are cutting output and buyers are purchasing only what they need. Stability achieved through low transaction volumes is very different from stability supported by strong consumption.<\/p>\n<p><strong>Engineered wood tells a different story<\/strong><\/p>\n<p>The figures presented for engineered wood show that the decline is not uniform across products. Austrian glulam exports fell by 4.4% to 792,004 m\u00b3 in January\u2013May 2026, but deliveries to Germany increased by 4.8% and exports to Italy remained almost unchanged.<\/p>\n<p>The steepest losses came from markets outside the European core. Austrian glulam shipments to Asia, including Japan, fell by 40.5%, deliveries to the Levant and MENA region declined by 21.3%, and exports to North America dropped by 18.7%.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Destination<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Jan\u2013May 2026<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Jan\u2013May 2025<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Change<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">2026 share<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Italy<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">301,832 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">299,854 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">+0.7%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">38%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Germania<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">176,169 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">168,068 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">+4.8%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">22%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Rest of Europe<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">258,192 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">271,670 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u22125.0%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">33%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Levant\/MENA<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">18,689 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">23,765 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u221221.3%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">2%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Asia, including Japan<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">24,212 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">40,672 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u221240.5%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">3%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">North America<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">8,752 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">10,769 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u221218.7%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">1%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\"><strong>Total<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>792,004 m\u00b3<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>828,294 m\u00b3<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>\u22124.4%<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>100%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The figures show a market retreating toward its European base. Italy and Germany together absorbed 60% of Austrian glulam exports during the period, while distant markets accounted for shrinking volumes. This provides a degree of stability but increases Austria\u2019s exposure to the same European construction cycle that is already weakening conventional lumber demand.<\/p>\n<p><strong>Germany becomes Austria\u2019s largest CLT market<\/strong><\/p>\n<p>Austrian CLT exports fell by 4.7% to 196,984 m\u00b3 in the first five months of 2026. Beneath that decline, however, the destination structure changed markedly.<\/p>\n<p>Germany increased its purchases by 13.5% to 78,679 m\u00b3 and accounted for 40% of total Austrian exports. Shipments to Italy fell by 10.8% to 31,462 m\u00b3, reducing Italy\u2019s share to 16%. Exports to the rest of Europe declined by 7.6%, while the MENA region dropped by 33.5%.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Destination<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Jan\u2013May 2026<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Jan\u2013May 2025<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Change<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">2026 share<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Germania<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">78,679 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">69,342 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">+13.5%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">40%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Rest of Europe<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">70,344 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">76,167 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u22127.6%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">36%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Italy<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">31,462 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">35,283 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u221210.8%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">16%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Levant\/MENA<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">7,015 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">10,544 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u221233.5%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">4%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Asia, including Japan<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">5,710 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">5,743 m\u00b3<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u22120.6%<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">3%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\"><strong>Total<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>196,984 m\u00b3<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>206,714 m\u00b3<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>\u22124.7%<\/strong><\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\"><strong>100%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Germany is therefore buying less Austrian softwood lumber but more Austrian CLT and glulam. This does not indicate a general German construction recovery. It points instead to a change in the products and projects generating demand. Conventional residential construction remains weak, while larger engineered-wood projects can proceed through different financing channels and longer procurement schedules.<\/p>\n<p>The split was one of the most important signals from Klagenfurt. Volume demand for commodity lumber is still missing, but selected structural wood products are finding outlets in public, commercial and larger residential projects. Sawmills integrated with glulam, CLT or component production consequently have more options than producers dependent entirely on standard construction lumber.<\/p>\n<p><strong>Construction demand is moving from houses to larger projects<\/strong><\/p>\n<p>Italy provided the clearest numerical example of this change, but the pattern is relevant well beyond the Italian market. Timber construction is moving away from its traditional association with detached houses and into schools, public buildings, commercial properties, structural reinforcement and whole-building renovation.<\/p>\n<p>Italian timber construction output is estimated at approximately \u20ac2.2 billion in 2026, compared with around \u20ac1.3 billion in 2019. Growth was first accelerated by the Superbonus renovation programme and later by projects financed under the country\u2019s PNRR recovery plan.<\/p>\n<p>In 2026, public and non-residential work is expected to generate 57% of the sector\u2019s turnover. Non-residential timber construction is forecast to grow by 12.1%, while residential timber construction falls by 3.8%. The same division is visible in building-envelope renovation, where non-residential work is expected to increase by 4.4% and residential activity to decline by 1.9%.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Construction indicator, Italy 2026<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: right;\">Change<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Non-residential timber construction<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">+12.1%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Residential timber construction<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u22123.8%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Non-residential envelope renovation<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">+4.4%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Residential envelope renovation<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u22121.9%<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">All non-residential building activity<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">+15.2%<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Housing construction<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px; text-align: right;\">\u22125.6%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>This change affects the entire supply chain. Public and commercial buildings consume different products, require more engineering and certification, and are usually supplied through longer project pipelines than detached houses. They favour CLT, glulam, prefabricated wall and roof components and hybrid structures rather than large quantities of standard framing lumber sold through conventional distribution.<\/p>\n<p>They also cannot fully replace the volume lost from housing. A school or sports hall may generate a substantial order, but commodity lumber markets need thousands of smaller residential projects to maintain continuous consumption. The expansion of public timber construction is therefore providing work for specialised producers without generating a general recovery across the sawmill sector.<\/p>\n<p><strong>Austria\u2019s engineered-wood trade is becoming more European<\/strong><\/p>\n<p>Italy produced 248,000 m\u00b3 of CLT and glulam in 2025 across 19 plants represented by Filiera Legno, equivalent to 96% of national output. At the same time, the country imported 757,000 m\u00b3 of CLT and glulam with a value of around \u20ac410 million.<\/p>\n<p>The scale of imports confirms that domestic capacity has not displaced foreign suppliers. Austrian producers remain essential to the Italian market, particularly for glulam. Italian capacity growth does, however, explain part of the decline in Austrian CLT deliveries and creates more competition for standard products.<\/p>\n<p>The stronger Italian companies are also becoming more export-oriented. Austria is therefore no longer dealing only with a large customer to the south. It increasingly faces Italian producers selling into some of the same European project markets.<\/p>\n<p>For Austria, Germany and Italy now provide the majority of engineered-wood demand just as overseas exports are weakening. That concentration shortens transport distances and reduces exposure to container freight, but it also makes the sector more dependent on European investment, construction permits and public procurement.<\/p>\n<p><strong>Equipment investment shifts from capacity to control<\/strong><\/p>\n<p>Klagenfurt has traditionally been a machinery-heavy fair, and the 2026 edition maintained that character. The commercial argument around new equipment, however, has changed.<\/p>\n<p>During stronger markets, investments were frequently justified by additional cubic-metre capacity. In the present environment, the emphasis has moved toward controlling production costs and extracting more value from the same log intake. Scanning systems, automated grading, kiln controls, handling technology and digital production management attracted interest because they can reduce labour, energy consumption, downtime and grading losses.<\/p>\n<figure id=\"attachment_43181\" aria-describedby=\"caption-attachment-43181\" style=\"width: 640px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.globalwoodmarketsinfo.com\/wp-content\/uploads\/2026\/09\/klagen78.jpeg\"><\/a><figcaption id=\"caption-attachment-43181\" class=\"wp-caption-text\">Klagenfurt 2026 showed a timber market with sufficient supply, but still held back by weak demand and tight financing<\/figcaption><\/figure>\n<p>Drying technology is particularly important. Energy remains expensive, customers require tighter moisture specifications, and holding lumber in kilns for longer than necessary ties up both working capital and production capacity. Better control systems can reduce energy use and shorten drying cycles without forcing a mill to increase annual output.<\/p>\n<p>Automation is also becoming a response to the shortage of skilled workers. Mills may have sufficient theoretical capacity but lack the operators, maintenance staff and production managers required to run it consistently. Equipment that reduces dependence on manual sorting or repetitive handling can therefore be justified even in a stagnant volume market.<\/p>\n<p>Financing remains the obstacle. Suppliers reported active interest and serious technical discussions, but investment decisions are taking longer. Buyers require clearer payback calculations, while projects aimed only at increasing capacity are harder to approve.<\/p>\n<p><strong>EUDR remains a cost even after simplification<\/strong><\/p>\n<p>European regulation was never far from the market discussion. The changes and postponements made to the EU Deforestation Regulation prevented the production disruption that the Austrian industry had feared around the turn of 2025\/26. Yet postponement did not remove the need to adapt data systems, supplier procedures and customer documentation.<\/p>\n<p>The industry\u2019s complaint is no longer directed only at EUDR. The Packaging and Packaging Waste Regulation is now adding another layer of requirements while more than 30 delegated European legal acts are still missing. Companies are being required to prepare systems before all the operational details are available.<\/p>\n<p>For large groups, compliance creates cost and administrative work. For smaller sawmills, timber merchants and packaging producers, it can also influence whether certain products or customer relationships remain commercially worthwhile. Regulation is consequently entering investment calculations alongside electricity, wages, freight and interest rates.<\/p>\n<p>Schm\u00f6lzer summarised the industry\u2019s frustration in Klagenfurt: \u201cA bad regulation does not become better because it arrives two years later. Putting bureaucracy on hold is not cutting bureaucracy.\u201d<\/p>\n<p><strong>The market heading into 2027<\/strong><\/p>\n<p>The Klagenfurt market did not point toward a sharp downturn, but neither did it provide evidence for a strong recovery. The working assumption for the coming months is continued production discipline, adequate roundwood supply and cautious purchasing.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 15px; margin: 22px 0;\">\n<thead>\n<tr style=\"background: #a6192e; color: #ffffff;\">\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Market segment<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Signal from Klagenfurt<\/th>\n<th style=\"border: 1px solid #d8b7bd; padding: 10px; text-align: left;\">Implication<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Sawlogs<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Generally sufficient supply; additional salvage wood in some regions<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">No immediate shortage, but prices may remain firm<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Softwood lumber<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Stable prices, weak volumes and short purchasing positions<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Limited pricing power for mills<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Glulam<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Core European demand holds better than overseas sales<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Greater dependence on Germany and Italy<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">CLT<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">German demand rises; Italian purchases from Austria decline<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Project markets outperform commodity housing<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Residential construction<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">No sustained recovery visible<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Commodity consumption remains weak<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Public\/non-residential construction<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Clearer growth and stronger project pipeline<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Supports engineered wood and prefabrication<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Middle East exports<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Lower demand and sharply higher freight costs<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">More European lumber remains inside Europe<\/td>\n<\/tr>\n<tr style=\"background: #fbf2f4;\">\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Machinery<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Interest in automation, recovery and energy savings<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Investment continues selectively, with longer approval periods<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Finance<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">The most frequently identified constraint<\/td>\n<td style=\"border: 1px solid #d8b7bd; padding: 9px;\">Projects and inventory remain restricted<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A meaningful recovery will require more than stable lumber prices. Construction volumes must rise, financing must become easier, and sawmills must regain a workable margin between the cost of logs and the selling price of lumber. Until those conditions appear together, mills are likely to keep production close to confirmed demand.<\/p>\n<p>The surprise at Klagenfurt was not that the market remained weak. It was how differently that weakness is being distributed. Roundwood can trade positively while sawmill margins deteriorate. German CLT imports can rise while German purchases of Austrian softwood lumber fall. Public timber buildings can expand while residential demand contracts. Machinery halls can remain busy while investment approvals slow.<\/p>\n<p>Europe\u2019s wood market has stopped falling in a straight line. It has broken into separate product, destination and financing cycles, each moving at a different speed. That makes the market less visibly dramatic than during the price shocks of 2021 and 2022, but considerably harder to manage.<\/p>\n<p>For Global Wood Markets Info, the four days in Klagenfurt showed a market that is no longer falling uniformly, but is dividing into separate product, destination and financing cycles.<\/p>\n<p>The conclusion from Klagenfurt was therefore sober: there is enough wood, enough production capacity and enough technology. What the market lacks is broad construction demand, affordable money and sufficient margin to turn available capacity into profitable output.<\/p>","protected":false},"excerpt":{"rendered":"<p>The 58th International Timber Fair in Klagenfurt brought together more than 500 exhibitors and 22,000 trade visitors at a moment when Europe\u2019s timber industry is producing enough wood but struggling to sell it at margins that justify current raw-material, energy &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/klagenfurt-2026-europes-timber-market-is-not-short-of-wood-it-is-short-of-demand-and-money\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":99847,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99846","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - 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