New report outlines European and Russian roundwood supply outlook

Europe and Russia reportedly account for roughly 43% of global industrial roundwood supply. However, the report shows that outlook differs significantly between Russia, the Nordics, the Baltics, and Central Europe, reflecting differences in forest resources, harvest intensity, industry structure, and exposure to forest damage.

It states that while the region remains one of the world’s most important suppliers of softwood industrial roundwood, future growth is expected to be modest, with tighter markets and generally higher log prices through 2035, with the Nordic countries remaining most efficient and competitive, with high harvest levels that however leave limited room for significant expansion.

The Baltics in turn have experienced rapid growth in the past decades, but, utilization levels have reached unsustainable levels with harvests exceeding net forest growth. As a result, supply is expected to decline.

Central Europe is still adjusting after the major bark beetle outbreak that drove exceptionally high salvage harvesting between 2018 and 2022. Countries such as Germany, Austria, and Poland experienced unusually high harvest levels during this period, temporarily increasing wood supply. Softwood supply is expected to fall. Climate change, ageing forests, and increasing forest damage are also expected to weigh on long-term growth, while relatively high harvesting and transport costs contribute to elevated log prices.

Russia continues to hold the largest long-term supply potential due to its vast softwood forest resource and relatively low utilization levels. Harvest levels remain far below biological growth, particularly in Siberia and the Russian Far East. However, supply growth has been constrained by limited infrastructure, restricted access to equipment and financing, and increasing trade and policy barriers.

Overall, Europe and Russia are expected to remain critical suppliers to global softwood markets, but future growth will be limited. Maturing forest resources, rising environmental pressures, forest damage, and constrained investment.

The report, written by Glen O’Kelly, O’Kelly Acumen (Stockholm, Sweden), and Håkan Ekström, Global Wood Trends (Seattle, USA), is the second regional study in a three-part series  analysing global softwood roundwood supply and pricing across all major regions. The first report was published in April and focused on North America, while the third report, covering Latin America and Asia-Pacific, will be released in June.

Elsewhere, Cepi has released its preliminary statistics report for 2025, which shows a 1.5% decrease in European paper and board production compared to 2024, reflecting the issues of ‘rising costs, geopolitical challenges and rising trade tensions’ over the last 5 years.

In other news, the European Commission announced it intends to simplify the EU Deforestation Regulation and lessen administrative burden and costs by 30% as it publishes new guidance documents.