Overall actual softwood timber market reflection (inspired by PMI outcome March)

I see the positive trend continuing, even in the Eurozone. Although it is the services sector that is still only showing growth here (50.3), the manufacturing sector is showing tentative signs of improvement in the background (although output drops slightly to 46.1). This mentioned positivism is mainly due to wage growth is outpacing inflation, strengthening household purchasing power. This is still held back by German and French industrial underperformance (after all, together with Italy and Spain, they account for ¾ of the Eurozone’s manufacturing industry!). The biggest concern is still in the lack of orders in this area.
Globally, manufacturing (and orders) are showing growth (50.6). India again showed the highest level of PMI growth (59.1). Greece, Indonesia, Russia and Brazil also showed stronger growth rates. Growth expansion has also returned in China and the US, as well as in Vietnam, Thailand and Indonesia.

The timber market is developing supply-driven. Where Northern Europe in particular is ‘screaming blue murder’ when it comes to availability and production backlogs, Germany in particular is strikingly lagging behind. As a result, there is a clearly more price-increasing trend in the northern part of Europe. Despite the fact that cost pressure throughout the Eurozone is still clearly higher than the current market price level.
Whether the end of the strikes in Finland will have a decisive impact on the supply side I venture to doubt.
The order positions worldwide and the effect of these on the supply side will be decisive. Until the largest European industries, especially Germany, show an upward trend, it will have to wait and see what effect this has on the price development in both supply and demand. A big improvement in these during this quarter is not to be expected due to lagging demand. Due to high cost pressure and possibly rising export demand, I definitely do not expect to see falling prices either.

Let the sun shine in the broadest sense of the word (Of course especially in the conflict areas)!
Business wise, in any market, we always see a positive trend line in Q2. Are you also ready for it?!

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