54 | Country Focus: France
Above: UK imports of French softwood rose over 700% in Q1 2021 PHOTO: SCIERIE MOULIN
◄ and predictions are not overly optimistic. Some French sawmills are at risk of closing due to lack of raw material. In turn, there will inevitably be an impact for their export customers, including buyers in the UK who may find problems ensuring a stable supply of wood products. To raise awareness on this subject of strategic importance for the entire European wood industry, the French Timber Federation (Fédération Nationale du Bois – www.
fnbois.com) is working on legal solutions and lobbying. This includes a petition being distributed Europe-wide ‘I say stop to massive log exports’ (
https://lnkd.in/dU4tvWt and see p17). It describes European sawmilling as facing “mortal danger” from the “haemorrhage” of logs from the continent and appeals for support in its campaign to limit exports. It tells prospective signatories that it’s in their hands “to write the history of the end or rebirth of European wood processing”. So far over 9,000 people have signed.
RISING GLOBAL SOFTWOOD DEMAND The increase in consumption in its domestic market, combined with the boom in demand from American and Chinese buyers caused the French timber sector to reach record sales levels this year. This was especially the case in softwood lumber, but the hardwood sector is also under pressure to meet high demand both in Europe and Asia.
Although most French softwood sawmills are focused on the domestic market, exports are also rising. Demand is high for Douglas fir in northern Europe and for pine in Spain. Softwood lumber exports (mainly fir) to the UK, after rising 184.8% to 20,986m3
in
2020, increased 702.7% in the first quarter of 2021 over the same period the year before to hit 11,399m3
.
The two main drivers of demand for the French softwood sector are the packaging and building industries. With the implementation of new regulation on building’s environmental performance, benefiting
TTJ | July/August 2021 |
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wooden construction (RE2020), the domestic market will remain strong in 2021 and prices are expected to rise due to competition for logs. It shouldn’t be surprising to see exports decrease in coming months as softwood mills, facing tight raw material supply, prioritise long-term customers.
OAK RECOVERY
Demand for French oak fell sharply from March to July 2020 due to the pandemic and lockdowns, before picking up, then accelerating from November.
As a result, total oak lumber exports were only down 7% last year.
European users were looking for high grade lumber and added-value products, such as solid wood or laminated products, as they could not get supplies from eastern Europe or Asia. This market remained strong for the rest of 2020. Prices have increased to cover additional shipping costs and rising log prices.
Oak lumber exports to the UK increased 1.7% last year, despite a couple of slow months in the initial lockdown. Impending Brexit might have encouraged UK distributors to increase their stock levels beforehand and demand was reported high for renovation and landscaping products.
Latest figures show a rise in total French oak lumber exports of more than 25% in the first quarter of 2021 to 56,110m3 sales to the UK rising 38.8% to 13,821m3
, with ,
consolidating the country’s status as France’s leading oak export market.
FRENCH PANDEMIC PERSPECTIVES The past year has been exceptional for everyone, not least the French wood industry. Adding to the difficulties caused by the
lockdown and Covid-19 safe work practices, implementation of Brexit was another source of concern for many French timber suppliers; the UK being one of our main trading partners for several types of wood products, notably of course, oak. However, after the first few
weeks of familiarising themselves with new post-Brexit UK import processes, feedback from sawmillers was rather comforting, with no major disruption reported. Thankfully, oak is not subject to any special procedure, and all actors in the supply chain are now familiar with new administrative processes. For the rest of 2021 and 2022, French industry perspectives are encouraging. It is unlikely the timber market will stay at current high levels, and softwood prices are bound to decrease, following the trend of the US market, although the new average price should be higher than pre-Covid due to higher costs. However, we expect French and European markets to remain dynamic next year, with packaging and construction sectors driving demand for softwood lumber. Sawmills are also investing in more technical and engineered products for construction. The implementation of the new RE2020 regulations should massively boost use of wood and carbon neutral products in buildings. We expect to see a particular rise in demand for CLT and glulam, with new usage in high-rise construction expected to generate 400,000m3
of extra demand.
The log export situation remains an area of concern, as the ability of the French industry to benefit from buoyant market conditions depends on availability of raw material. If nothing is done, soon Europe will be one of the last places where there is no market restriction on log exports, jeopardising availability of wooden products needed to achieve carbon neutrality.
FRENCH TIMBER 2021
Despite the pandemic and cancellation of some events, national marketing body French Timber (
www.frenchtimber.com), kept most of its operation running. We’ve had an office in Shanghai for the
last 10 years and attend the main trade shows, like Domotex and Interzum thanks to our local representatives. In 2021 we also plan to expand our activity in China with new promotional activity in different cities away from the mainstream. And we hope to bring members and sawmills to on-site physical events in the second half of 2021. We also have a diversified programme of events in South-east Asia, Vietnam, the Middle East and Europe. Activity in Europe has, in fact, been increased in 2021 as it’s easier to organise trade missions here for the moment. We also have a new social media focus, to reach potential customers never targeted before.
Our objective is to provide our members with opportunities in various markets to help diversify their customer base. Our role is also to keep them up to date with latest market information, so they can make the best strategic decisions for their companies. ■
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