The 73rd edition of the International Softwood Conference ends with a hope

 Tuesday, October 28, 2025

The 73rd International Softwood Conference (ISC), held on October 22–23, 2025, in Oslo, Norway, provided a critical meeting point for the global wood industry. Hosted by Treindustrien in collaboration with the European Organization of the Sawmill Industry (EOS) and the European Timber Trade Federation (ETTF), the event gathered over 260 participants to dissect the complex economic and regulatory landscape shaping the future of wood-based construction and furniture components.

The conference’s core message was one of cautious stabilisation in a period of intense structural challenge. While the industry sees tentative signs of recovery in the construction sector, particularly looking into 2026, immediate concerns regarding raw material supply, legislative burdens, and profitability remain paramount.

The economic overview

The conference opened with a sobering yet forward-looking economic overview, emphasising the exceptional uncertainty in the global market. While the high volatility seen in preceding years appears to be diminishing, the industry is grappling with a severe disparity:

• Subdued demand vs. high log prices: Despite softer global demand for sawn wood, driven in part by high interest rates stifling construction, raw material (log) prices have risen across Europe. In some regions like Scandinavia, log prices have reached unsustainable levels (up to €150–160/m³), severely denting the profitability of sawmills.
• Production stability: EOS member countries have seen softwood production drop by about 10% in recent years to align with weaker demand. However, forecasts suggest that production levels across Europe have stabilised in 2025 and are projected to remain steady into 2026, reflecting the sector’s effort to balance supply despite the log price squeeze.
• Geopolitical and trade shifts: Speakers highlighted the increasing influence of geopolitical factors, including the impact of US tariffs on Canadian sawn softwood. These duties put European exporters in a comparatively better position, encouraging Canadian producers to actively seek alternative export markets.

Structural challenges

A major long-term discussion focused on the looming raw material crisis, which necessitates a strategic shift in the industry’s approach to wood species:

1. The decline of spruce and the promotion of pine

Expert analyses confirmed that the long-term supply of logs is expected to flatten or even decline across much of Europe. The primary driver of this projected loss is the significant reduction in spruce volumes, decimated by bark beetle infections and other environmental factors, particularly in Central Europe.

In response, a common theme across the conference was the imperative for the entire sector to promote the use of pine for a broader range of construction and component applications. The industry must adapt to:

• Processing smaller-diameter roundwood.
• Investing in technology to improve yield in sawmilling.
• Actively communicating the benefits of pine as a substitute for spruce to design professionals and builders.

2. EU Deforestation Regulation (EUDR) uncertainty

The industry expressed a serious lack of clarity and legal certainty regarding the implementation of the EU Deforestation Regulation (EUDR). This new legislative hurdle, while aimed at sustainability, is seen as creating significant regulatory and bureaucratic burdens. Participants strongly urged for genuine simplification measures to ensure the EUDR is practical, workable, and proportionate for all operators in the wood supply chain.

Market opportunities

Despite the economic and regulatory pressures, the conference also spotlighted key market opportunities for the furniture and construction wood industry:

1. Housing policy and prefabrication

Discussions on housing policy in the UK and the EU highlighted the potential for renovation and rooftop construction as promising outlets for sawn softwood consumption. Furthermore, the event underscored the rising demand for industrial-made wood building modules and prefabricated systems, which offer efficiency and sustainability advantages.

This focus on prefabrication was given practical context during the site visits: participants saw innovative production lines, such as an exact cutting mill that optimises production from random-length lumber based on digital customer orders, minimising waste throughout the value chain.

2. Mjøstårnet: The power of wood in design

A central element of the Norwegian experience was the visit to Mjøstårnet, the world’s tallest timber building (85.4m) located in Brumunddal, north of Oslo. The impressive structure, which uses glued-laminated timber (glulam) for its main load-bearing components and cross-laminated timber (CLT) for shafts, served as a tangible example of:

• Architectural possibility: It showcases wood’s capacity as a structural material for high-rise, mixed-use buildings (hotel, apartments, offices).
• Sustainability credibility: The building exemplifies wood’s potential to store carbon and act as a substitute for more carbon-intensive materials like steel and concrete—a key message speakers urged the industry to be bolder in promoting to address climate change.

The 73rd ISC ultimately served as a vital forum for confronting the industry’s most pressing issues. The consensus reinforced that while market stability and profitability remain strained by log prices and regulatory complexity, the long-term future of wood is bright, driven by the global imperative for sustainable, carbon-storing building solutions and the need for innovation in how timber is sourced and processed.

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Tags: EUDR, raw material outlook, sawmill industry, Softwood Conference 2025, timber construction, wood-based components