| 17
GETTING A GLOBAL SOFTWOOD PERSPECTIVE
The ISC was a rich source of data and indicators on the global softwood sector, reports conference moderator, Keith Fryer
Usually, International Softwood Conferences (ISC) take place in areas of high softwood activity, so it was a high-risk strategy to hold this year’s in Sicily, but the gamble paid off. Around 230 delegates attended and they received an information-packed day and a half. It’s a well-oiled machine with a winning formula and I always wonder why there are so few British delegates. Some of that seems to go back to the days when British timber companies saw themselves as customers, unwilling to pay to go and hear what the supply chain was doing.
That loss of information and linkage becomes increasingly dangerous in a world where timber availability is on a downward trajectory. I’d seriously urge the larger UK softwood trading companies to attend. The fi rst day was packed with presentations on different countries, setting out their positions and forecasting where they will be heading through 2025. Canada, the US, Japan, China, MENA (Middle East/ North Africa), New Zealand, Australia and India were all covered, drawing out some very interesting data. There’s no doubt that generally log prices are far too high and selling prices too low. Demand is not especially down, but there’s too much softwood on the market. However, Germany has a major structural issue, with signifi cant declines in furniture consumption, construction and other economic activities (see pp32-33). Previous conferences have shown forest fi res and bark beetle as signifi cant problems, but this year they appeared to be less of an issue. One major variance between European and North American sawmills is uses for by-products. In North America, apart from wood pellets, most other residues are seen as a problem, costing
money to dispose of, while mills still use gas for drying. Here in Europe these crumbs from the table are often the difference between sawmill profi t and loss. China was reported to have continuing huge oversupply of new housing. Offi cial Chinese data is diffi cult to pin down, but it’s estimated there are at least 90 million empty homes. Construction activity is therefore severely limited and that affects New Zealand in particular, with its radiata pine monoculture and lack of alternative use options.
The presentation on India highlighted the use-of- timber legislation change in 2020, which opens the market of 1.3 billion people to huge opportunities. But it will be a long, hard slog to get society to change its buying habits. The current usage tends to focus on price driven, lower grade softwood. This really needs to change into demand driven by specifi cation into desirable value- added products.
ISC debates also focused on global forest change, innovative uses of softwood and of course the new EU Deforestation Regulation (EUDR) requirements. The news of a one-year deferment of the EUDR implementation came the day before the conference and created a lot of discussion, but ultimately this is not going away. The 73rd ISC will be Oslo. If you’re really serious about understanding the softwood market, then it wouldn’t be a bad idea to get your reservation in early. Vienna sold out last year, as did Sicily …… hurry while stocks last! ■
Demand is not especially down, but there’s too much softwood on the market
www.ttjonline.com | November/December 2024 | TTJ
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89
