Sawmills across Europe and North America are reducing production as subdued construction demand limits sales and affordable log supplies become harder to secure in several producing regions. Lower Canadian duties offer some relief, but trade barriers remain substantial. China’s uneven imports and continued pressure on exporters in New Zealand show how little support the industry can expect from a broad recovery in international demand.
The global sawmill industry is struggling with a combination that production cuts alone cannot easily resolve. Customers remain reluctant to commit to large purchases, while mills in several regions face expensive logs, rising operating costs and uncertainty over access to export markets. Reducing shifts can prevent inventories from accumulating, but it also leaves fewer cubic metres over which to spread labour, maintenance and financing costs.
