International Softwood Conference attracts record-breaking delegate numbers

The October 12 event was hosted by the Fachverband der Holzindustrie Österreichs, which co-organized the event with the two usual partners: the European Organization of the Sawmill Industry (EOS) and the European Timber Trade Federation (ETTF).

The conference was opened by a session focused on the availability of raw materials, which was not the main concern for the industry in 2023 but remains an important question amid the climate change debate and forest policies playing a bigger role both at state and at European level. 

Sami Pastila of consultants AFRY showed that the Northern Hemisphere will keep driving the availability of raw materials in the softwood industry, with growth opportunities in the US South. A steady supply is expected in Europe but with regional differences. 

Silvio Schüler of the BFW – Austrian Forest Research Centre – stated that the growing stocks of conifers in Europe are still high but increasingly subjected to climate risk and long-term availability of softwood resources needs an adapted management. 

Herbert Jöbstl, president of EOS, said the industry did not have to narrowly focus on the availability of logs only, but the industry has to improve efficiency for instance when it comes to logs’ yield, and wood reusability and recyclability.

Information-packed sessions about the market trends were followed with attention by the delegates. 

“While previous years since the beginning of the pandemic were characterized by extraordinary volatility but good profitability for many sawmills across Europe, in particular 2021, this year the softwood markets have disappointed traders and sawmillers alike on the back of the slowdown already started in the second half of 2022,” the organisers commented.

“The downturn can be compared to the one that affected the industry 15 years ago during the global financial crisis.”

Having peaked in 2021, the development of softwood production and consumption suggests that in 2023 production will have declined by over 8% in Europe and consumption by around 11% compared with 2022. Speakers at the conference concurred in identifying the reasons that have caused the market to go down.

Production in the sector has been curtailed to accommodate weak demand. 

The situation is somewhat more complex in Central Europe than in Scandinavia, particularly in Sweden. Sawn softwood prices have sharply declined from the peaks observed during the previous years. 

European producers achieved at the end of the summer a 14% market share in the all-important US market amid a decline of Canadian exports to the US.

For more details, see the next issue of TTJ.