ISC Expressed Forecasts for Growth in European Softwood Consumption and Production in 2012

Delegates at the annual International Softwood Conference (ISC) last week expressed scepticism about forecasts for growth in European softwood consumption and production in 2012. Hosted this year by the Danish Timber Trade Federation in Copenhagen, the ISC attracted 120 delegates from 19 countries. The conference was told that, following production growth in European ISC member states of 3.2% in 2011 to 102 million m³ And in North America by 5.18% to 84 million, the regions' output would rise another 1.4% and 6.4% respectively in 2012. Consumption this year was expected to be 1.1% up in Europe to 73 million m³ And 0.6%, also to 73 million m3, in North America, with 1% and 5% predicted respectively in 2012. But attendees said these figures were "unsatisfactory" and "too optimistic", according to an official statement from the event organisers. "The economic outlook in almost all European countries has weakened considerably and this weakening will probably continue, " it said. "Countries no longer have funds for stimulation packages, and the turmoil in North Africa and the Middle East continues to impact the market. So no real recovery or increase in demand is expected in 2012. " European mills also expected profitability to be hit next year due to "all-time high log prices" in nearly all sources. The US and Canadian industries were downbeat here too, with their countries' forecast housebuilding recovery failing to materialise. Some market relief, however, was expected from increasing log and lumber demand in China. The ISC also discussed the upcoming anti-illegal logging EU Timber Regulation. Some delegates expressed concern that suppliers would not be able to comply, but this was refuted by representatives of producing countries. The conference additionally gave the go ahead on a new European-wide wood and wood products promotion plan to ensure a uniform message is put out by the industry. The 2012 ISC takes place in Stockholm. Source: ttjonline.com