VonWood Timber Update - Week 42: Price movements across the market

Industry Overview

This week, the wood and timber industry observed significant developments across Europe and the US. The ongoing emphasis on sustainability and biobased products was highlighted during the PEFC Netherlands annual meeting, where the growth of wood usage in construction was discussed. Meanwhile, the European Union's deforestation regulation faced a delay, highlighting the challenges in balancing ecological ambitions with economic realities. Market fluctuations continue to impact timber prices, as seen in Sweden and Norway, where high log prices are creating pressures on local sawmills.?

Market Updates

The timber market experienced varied trends, with softwood lumber prices rising by 4% in September, while hardwood lumber saw a slight decrease. In Finland, timber trade slowed with declining prices for pine and spruce sawlogs, although birch sawlogs saw a price increase. Conversely, the UK saw a modest rise in wood imports, offering a glimpse of optimism for 2025, driven by potential increases in the housing sector. However, uncertainty prevails in the US softwood lumber market due to the aftermath of Hurricane Helene and strikes affecting ports from Maine to Texas, leading to supply chain disruptions and price volatility (Global Wood Markets Info).

Policy and Regulation

The European Union's deforestation regulation (EUDR) has been delayed by a year, now set to take effect at the end of 2025. This decision was made following widespread protests from global trade partners and businesses about the lack of clarity and preparation time. The EU aims to ensure a smoother transition to deforestation-free supply chains, with enhanced guidance and support tools to be launched by year-end (Timber Industry News). Meanwhile, the PEFC Netherlands highlighted the importance of the EU's deforestation regulation in promoting sustainable forestry practices (De Houtkrant).

Outlook for the Coming Week

Looking ahead, the timber industry will continue to navigate market uncertainties and regulatory shifts. The delay in the EU's deforestation regulation may affect global supply chains. Market participants should monitor price trends, particularly in softwood and hardwood lumber, as economic conditions and environmental factors influence supply and demand dynamics. As Europe and the US push for increased housing and infrastructure projects, the demand for timber is likely to remain robust, albeit with potential challenges in supply chain logistics and regulatory compliance.

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