At the Wood Fair, the Holzkurier had the opportunity to talk to the leaders of the European sawmill industry, Austrian timber industry and timber trade sector. The eight video interviews can be summed up as follows:
- Supply was not an issue this year.
- Sales have stabilized at a lower level.
- The downward trend was less pronounced in the timber construction sector than it was in the construction industry as a whole. Accordingly, timber construction is performing disproportionately well.
All of the interviewees had one thing in common: the rejection of the EUDR in its current form. Almost everyone acknowledges the regulation’s good intentions, but its preparation is described as unrealistic or even botched.
Supply fluctuating but okay
Log supply in itself was not a central topic this year. However, several people we spoke to did mention the changing supply situation. Smaller volumes of log wood are coming to Austria from the neighboring countries of the Czech Republic and Germany. This year, this was not a problem. In the short term, however, this will have an impact which should not be underestimated.
The European hardwood sector is particularly affected by the export of log wood. Exports mean fewer purchasing opportunities and at the same time, the sector suffers losses because of re-imports of finished and semi-finished products. Maria Kiefer-Polz, Vice-President of EOS and Senior Manager at EHP, Frauental, never tires of criticizing this situation. At the same time, she can imagine that the EUDR might provide support to the European hardwood sector. “As much as the EUDR will make life more difficult for us in the short term, the regulation could help prevent distortion of competition in the Far East through subsidized trade flows of log wood over the long term.”
Log prices require strong sales markets
“Since log prices tend to rise rather than fall towards the end of the year, our sales markets have to go well so that there can be an increase in the prices of our products,” Michael Pfeifer, head of the Austrian delegation at the bilateral talks of the Comitato Misto and CEO of the Pfeifer Group said, calling one everyone to look to the near future.
“This year, the market hasn’t exactly been booming, but at least it was possible to place the sales volumes when it comes to lumber. In further processing, the situation was a bit more difficult. Here, we feel that the economic crisis is more pronounced in Central Europe than in other regions. Nevertheless, it is a consolation that timber construction is performing much better than the construction industry in general,” Markus Schmölzer, Chairman of the Austrian sawmill industry and Managing Director of Hasslacher Norica Timber, analyzed.
Timber construction sector doing well
Richard Stralz, Chairman of proHolz Austria and CEO of Mayr-Melnhof Holz, also recognizes that “the timber construction sector has grown massively this year. After a catastrophic first quarter, there was a complete turnaround in demand for CLT within two or three weeks. Apparently, customers have waited a very long time to place their orders.”
“In my opinion, most people are bad-mouthing the construction industry. At a domestic level, timber construction is doing well,” Ferdinand Reisecker, President of MH Massivholz and owner of Holz Reisecker, analyzed. “The timber construction sector is heading more towards renovation and modernization. As a result, orders are smaller than what is usual for new construction projects.”
Almost all of those interviewed agreed that for a substantial recovery, patience is still required and that things will still be difficult next year. As Stralz commented: “Next year won’t bring any major changes but I believe that in 2026, there will at least be a small light at the end of the tunnel.”
Bottom reached
Schmölzer shares this view, but he sees an end to the downward trend: “We have reached the bottom. Production is picking up slightly again and there are enough buyers for this additional output.” It will take some time before the construction industry recovers substantially. When it comes to packaging products, though, Schmölzer already sees that “some industries are recovering more quickly than the construction industry.”
EUDR: Many questions, few answers
When asked about the biggest challenge the industry is faced with, the answer was a four-letter word: EUDR.
Stralz: “The EUDR is an insane bureaucratic hurdle for the entire industry. I think it’s a bad joke: You introduce a regulation, make laws, impose penalties, but you don’t tell people how the regulation should be implemented.”
Monika Zechner, Chairwoman of the Styrian timber industry: “The EUDR is a bureaucratic disaster. It cannot come into effect as soon and as comprehensively as is predicted right noe.”
Maria Kiefer-Polz: “The EUDR is very negative in the short term, because nobody knows what to expect and to do. Over the medium term, however, it could help the hardwood industry to prevent the re-import of Far Eastern wood products into Europe.”
Franz Teuschler, owner of Teuschler Holz and member of the Federal Committee of the Timber Trade Sector: “We are very worried about actually having to forward all the data. It cannot be that I have to disclose my suppliers to the end customers. I fear that the thousands of Austrian timber trade businesses don’t have enough information to really prepare for the EUDR. There is still no system, there are no directives – and there are only two months left.”
Quotes from Herbert Jöbstl
holzkurier.tv interviewed Herbert Jöbstl, Chairman of the Austrian Timber Industry Association, President of the European Organisation of the Sawmill Industry (EOS) and Head of Stora Enso Wood Products: “The volume of damaged wood has decreased noticeably this year. The regional calamities had no impact beyond the respective affected region.”
“In general, the entire European sawmill industry is well supplied. It must be said, though, that no sawmill anywhere in Europe is cutting at full capacity.”
“One striking change in Europe is the sharp rise in Swedish and Finnish log prices. As a result of that, log prices have converged across Europe.”
“At the start of this year, things were going well on the European market and in exports. Since then, however, overseas markets in particular have fallen short of expectations. The fact that consumption and production are balanced is a positive development. Cutting has reached a low point and now matches demand. Large inventories haven’t built up anywhere. The goods produced are sold, and despite all the doom and gloom, there is demand from the construction sector in particular.”
“In the short term, however, we will continue to feel the negative effects of subdued construction activity. Combined with inflation, this means that we all have a cost problem. And we can only solve this problem by increasing efficiency.”
