Timber Market Slowdown is set to Continue

UK Timber

The European sawn timber market is currently experiencing a significant and prolonged slowdown in demand. This trend reflects changing market conditions and could have various implications for the industry.

Europe’s sawn timber market entered May under continued pressure as weaker-than-expected spring demand and elevated inventories weighed on prices and production. Suppliers reported an oversupply of spruce, driven in part by redirected exports, while buyers with high stock levels limited new purchases.

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As a result, several producers, including Stora Enso, Södra and Vida, have reduced or suspended production. Although prices remained broadly stable across key European markets, industry sentiment weakened, with growing pressure for price reductions in the third quarter.

Market participants remain cautiously optimistic about a recovery later in 2026, but say stronger housing activity, improved consumer confidence and easing geopolitical uncertainty will be essential to stimulate demand.

Source; Fastmarkets


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