“The crisis is not over yet”, was one of the stark comments left with delegates at the International Softwood Conference in Madrid.
Thorsten Leicht of Pöyry Forest Industry Consulting told delegates at the European Organisation of the Sawmilling Industry event that despite stabilisation in the spring and summer, the first signs of autumn turmoil and ongoing margin squeeze were being felt.
Statistics presented at the conference showed Germany and Finland suffered the biggest falls in export volumes during 2008, recording dips of over 1 million m³.
The UK’s softwood imports fell further than any European country, with the country losing its status as Europe’s top importer to Italy.
Germany remained Europe’s biggest softwood producer, while Sweden was top exporter, followed by Germany.
A sharp decline was recorded in harvesting volumes due to lower sawmill demand, while Germany, Austria and Finland had the highest raw material costs.
European consumption was down 9.9% in 2008 (10.6 million m³).
Meanwhile, EOS delegates agreed that Europe should look at something similar to a North American scheme to increase the use of wood. About US$40m from monies collected under the Softwood Lumber Agreement with Canada is being used by the US to promote timber.
