The trend in wood prices in Europe has represented a significant challenge for the wood and panel industry in recent years. Starting in 2021, the market experienced a series of events that led to considerable fluctuations in timber costs, affecting the entire supply chain.
In 2021, the price of wood rose considerably, mainly due to growing demand from the United States. The USA has launched a series of construction projects, requiring large quantities of timber for building, which has pushed European exporters to increase shipments overseas. This phenomenon led to a drastic reduction in the availability of wood, especially conifers, on the European market.
In response to this strong demand, prices increased to over 84% above the long-term average. European companies, in search of greater profit opportunities, turned their attention to exports, leaving domestic demand uncovered. This created a situation where supply was unable to meet local demand, triggering a buying rush and causing price tensions.
The following year, the situation worsened even further due to Russia's invasion of Ukraine. This conflict triggered new shocks on the timber market as the European Union decided to completely halt timber imports from Russia and Belarus, two of the main suppliers of timber to the continent.
The decision to block supplies from these countries had an immediate effect on prices, increasing existing pressure and adding a new level of uncertainty to the market. European companies, already struggling to cope with reduced wood availability due to exports to the USA, faced additional logistical and economic challenges in finding new sources of supply.
At the same time, companies had to manage the increase in raw material costs, and the price spikes followed by drops in the second half of 2022 complicated the ability to plan and manage business operations.
Before 2021, wood prices were surprisingly stable, offering security to all operators in the sector. However, the onset of shocks showed how quickly this stability can be altered, revealing the market's vulnerability to external events.
These price increases did not only affect wood suppliers, but had repercussions on the entire production sector, including the market for various types of wood panels. Difficulty in obtaining supplies and rising costs forced producers and distributors to rethink their market strategies and resource management.
In summary, the shocks in wood prices in Europe have highlighted important supply and adaptation issues for companies. The ability to respond quickly to market changes has proven crucial, and companies will need to continue to adapt to new dynamics to remain competitive and sustainable. The complexity of the situation has made it clear how essential a diversified supply chain is, and how crucial innovation and the search for alternative solutions are to maintain long-term stability.
