Page 10 - FDMAsia Nov/Dec 2025

8 MARKET BEATS NOV/DEC 2025 FDM ASIA | www.fdmasia.com

Wood Market Prospects In EU projected to decline dramatically from 1.2 billion cubic metres
in 2012 to just 300 million cubic metres by 2100, according to
data presented at the 73rd International Softwood Conference.
Raw materials prices squeeze profitability The Czech State Forests harvest has stabilised at around

A critical challenge facing European sawmillers is the dramatic eight million cubic metres per year after peaking above 14
increase in raw materials costs, particularly in Nordic countries million cubic metres in 2020 during the bark beetle crisis.
where log prices have reached record highs, reported from This scarcity is driving mills in Central Europe and southern
fastmarkets.com. Sweden to increase their use of pine as an alternative. From a
In Finland, the spruce log price index has risen to structural perspective, pine and spruce often meet the same
approximately 160 (base 2015=100), while sawn spruce prices strength classification grades, though they differ in appearance,
have increased to only about 150, creating a significant margin handling, and treatment performance.
squeeze.
The situation differs somewhat in Central Europe, where Construction sector in EU shows signs of bottoming

prices haven’t risen as sharply as in the north but remain out
high compared with global competitors. A notable price gap The construction downturn that began in 2022 appears to
has emerged between fresh logs and beetle-damaged logs in have reached its nadir. EU building permits for new dwellings
countries like Germany and the Czech Republic. declined by 15 percent in floor area in 2023 and by a further
two percent in 2024, with the dwelling index stagnating last
Spruce scarcity reshapes supply dynamics year. However, recent monthly data show permits may have
Looking ahead, spruce availability is emerging as a structural bottomed out and are displaying slight improvement.

constraint on European production. Germany’s spruce stocks are Large markets with traditionally high wood consumption

Aleksandr Potashev