Italy's timber industry is facing what market observers describe as a "perfect storm", as geopolitical tensions, soaring freight rates, elevated roundwood prices, and rising energy costs continue to erode profitability across the supply chain.
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According to a report highlighted by Conlegno, conflict in the Middle East has severely disrupted Gulf shipping routes, pushing freight costs from around $500 to as high as $4,000 and effectively stalling exports to the region. Despite weak demand and oversupply in Europe, log prices remain historically high, particularly in the DACH region, Germany, Austria, and Switzerland, where prices have reportedly reached €148 per cubic metre.
The report describes this as a "divergent binary" effect, where weak market demand fails to reduce raw material prices, leaving sawmills operating with near-zero or negative margins.
Italian sawmills have modernised significantly over the past 15 years through Industry 4.0 investments and improved flexibility, but the sector continues to struggle with limited domestic timber availability due to forestry restrictions, bark beetle damage, and storm-related impacts such as Storm Vaia.
Processed wood products are also under pressure. Rising oil and gas prices have increased production costs for panel manufacturers, while higher glue and energy costs have pushed panel prices up between 5% and 10%. OSB prices have risen around 10% since the start of the year, while particleboard and pine plywood have also recorded significant increases.
The report warns that ongoing imbalance between rising upstream costs and limited downstream pricing power could trigger broader disruption across Europe's timber, pallet, and wood packaging industries.
Source: www.globalwood.org
