The timber sector in 2021
2021 was a particularly complicated year for the timber market, the result of several factors that impacted the sector:
- the pandemic shut down all sawmills, creating a scarcity of the product
- broken economic relations between the USA and Canada as well as between China and Russia, leading to the arrival of these two players on the European market: these countries buy 20% to 30% more expensive than European countries. As a result, the market in 2021 has never been so tight, causing a lot of product disruption.
A just-in-time market
The increasingly strong demand, resulting in the scarcity of the product, has generated price changes which have constantly fluctuated throughout the year.
The demand for wood is at the highest in all countries, and many sites are blocked in their progress. In addition, the sawmills, which were severely impacted during the first containment (just like those involved in the building industry), must replenish their stocks in order to be able to satisfy all the market players.
Finally, as mentioned above, some markets obtain more supplies than others: China is currently making purchases for a period of 2 to 3 years due to a very strong growth forecast for this country, which, at their scale, is extremely important to the European market.
The challenges for the future
The challenges for the years to come will be the supply capacity of players in this market, because demand is growing, but a major challenge is also emerging: obtaining wood that is traced and environmentally responsible in its treatment. The next few years promise to be rich and Kebony will have his full share to play in these new challenges.
Op-ed by Olivier Loheac, Kebony sales manager (LinkedIn).