European sawn softwood production is expected to reach another peak in 2007 with a volume of 117 million m³, according to a survey by the European Organisation of the Sawmill Industry and UNECE Timber Committee.
The 5.8% growth, revealed at the International Softwood Conference in Geneva, is mainly due to a good availability of sawlogs in the first half of the year because of favourable weather and consequences of the January storms.
Production levels dropped in the second half but a further growth is predicted for 2008.
European consumption of sawn softwood is expected to close the year at about 86 million m³, up 5.4% on 2006, with another increase predicted in 2008.
Consumption levels were high in the first half but have since declined, causing sawmill and customer stocks to build up.
The conference, which was combined with the annual meeting of the UNECE Timber Committee, also heard that European sawn softwood production was now on a par with North America, the latter’s output expected to fall this year by 5.8% to slightly above 117 million m³. North America’s production is expected to fall further in 2008, caused by a shrinking construction sector and reduced log availability in Eastern Canada.
Concern was expressed about China’s impact on the international softwood markets, given the country’s high demand for logs and sawn timber. Russia’s new duty on log exports was also raised as a matter of concern.
