WRI Insights: Lumber Trade in Europe to Witness Dramatic Change

SEATTLE (Scrap Monster): The recently published Wood Resources International (WRI) Market Insights 2022 report predicts dramatic change in trade of logs and lumber in Europe in the forthcoming years. This is mainly on account of decline in timber harvests in Central Europe and the anticipated plunge in forest products imports on account of sanctions against Russia.

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According to the report, the Central European roundwood markets are at a turning point. The extensive damage from spruce bark beetle outbreak in the region over the past four years has led to temporary increases in harvesting, lumber production and log exportation. The annual roundwood removals surged higher by 15% from 2017 to 2021. From the peaks in 2019, the timber damaged by bark beetle recorded decline by 5% and 24% in 2020 and 2021 respectively. The volume of damaged wood is expected to fall at the rate of 10-20% per year, WRI noted.

The Central European lumber production will see decline from current record levels. The region may shift from being a net log exporter to a net importer. The reduced timber supply coupled with Russian invasion of Ukraine will impact European industry production, trade flows and prices of forest products in the years to come.