High oil prices and the strength of the euro are forecast to slow down the European sawmill industry during 2005 after a positive result in 2004.
At the European Organisation of the Sawmill Industry (EOS) general assembly in St Petersburg members heard that its softwood sector performed well in 2004, with production growth up 2.6% on the previous year. However, forecasts for 2005 predict growth at only 0.7%, due probably to the general economic climate.
Softwood consumption peaked in 2005, with an increase of 6.6% on the previous year reported. EOS members forecast a more modest increase of 1% in 2005, in line with production forecasts.
The European hardwood sawmilling sector is still struggling both at home and abroad. However, EOS members reported a positive result for the first time since 2001, with an increase of 5.7% last year.
In 2005 hardwood production is forecast to stagnate again, with expected growth of just 0.4%.
Hardwood consumption in EOS countries continued to plummet in 2004, decreasing by 0.6% compared to 2003. It is forecast this downward trend will continue, with a reduction of 0.7% this year.
Such is the concern that the hardwood sector has developed a dossier outlining the difficulties which will be presented to the European Commission with the aim of receiving support from the EU authorities.
The EOS hardwood sector has also organised a European Hardwood Conference to be held in Paris on November 4 to discuss the market and other relevant matters.
