Extra demand needs to be created for timber products to avoid oversupply and weaker prices, according to the Canadian publication Wood Markets.
It claims growing forests and a general oversupply of timber and logs could put further pressure on prices.
The publication believes harvest increases in Russia and eastern Europe and plantation pine surpluses in the southern hemisphere could become “spoilers” on the markets.
Timber harvests in Russia only represent 16% of the country’s annual timber growth, with the Baltic states running at 50%. Europe’s 400 million m3 harvest is 59% of its available growth, while North America is higher at 94% (760 million m3 from a total of 805 million m3).
The reduction of harvest levels is seen as one possible solution, though low-cost timber producing regions are currently adding to their capacity. More wood promotion, such as that being undertaken by the Wood Promotion Network and wood. for good, could create more demand.
