On the 17-18 October 2024 the 72nd edition of the International Softwood Conference was held at the UNAHOTELS Capo Taormina, Italy. The conference was hosted by the Federlegno Arredo, which co-organized the event with the two usual partners: the European Organization of the Sawmill Industry (EOS) and the European Timber Trade Federation (ETTF). Source: Timberbiz
The event drew around 230 people coming from more than 20 countries all over the world and it was opened by a macroeconomic overview provided by Marco Fortis, which showed that many factors, including geopolitical tensions and a slowdown of globalization, are having a negative impact on the global and European economy. Italy is a partial exception to this having done comparatively better than its European neighbours over the last couple of years.
During the first day of the conference, information-packed sessions about the market trends were followed with attention by the audience. This year’s conference was marked by its truly global flair with presenters focusing not just on European markets, but on North America, China, Japan, MENA, India, Australia and New Zealand.
While there were regional differences, in some cases significant, it is apparent that 2024 has been overall a challenging year for the softwood industry across the world but probably slightly better than expected at the end of 2023.
The big question mark for operators in the sector is whether the market has bottomed out and 2025 can really be the year of recovery. After peaking in 2021, softwood production has significantly fallen over the last few years to adjust to the demand decline. If forecasts for 2024 are confirmed, at the end of the year production will be 12%lower than in 2021. Next year production is expected to grow by 2-3%.
Morten Bergsten, Vice-President and Softwood Chairman of ETTF, and Herbert Jobst, President of EOS, delivered similar messages in their presentations from their respective vantage points of user and producer.
Production in the sector has been curtailed to accommodate weak demand. Sawn softwood prices have sharply declined from the peaks observed during 2021 and 2022. This is mainly due to the downfall of the construction sector. However, there might be light at the end of the tunnel.
As it was reported by numerous speakers at the conference interest rates have started falling across the world, which might trigger an upturn in the construction sector, which would be vital for sawmillers and traders alike. If the market does have already bottomed out, the recovery is expected to be sluggish at least in the short-term.
