Germany Sees a Slowdown in Rough-Sawn Softwood Exports

Germany's rough-sawn softwood export market faced a noticeable dip in the first quarter of 2024, according to provisional data from the federal statistics office (Destatis). Total exports reached 1.234 million m³, reflecting a 4% decrease compared to the same period in 2022. This marks the third consecutive quarter where export figures have fallen short compared to the previous year.

European Export Volumes Remain Stable

Despite the overall downturn, the European Union and European markets provided a degree of stability for German exporters. Exports within the EU were recorded at 768,872 m³, showing resilience as they matched the previous year's levels. Similarly, total deliveries to all European countries edged slightly higher by 1%, reaching 852,993 m³—a small but optimistic signal for regional trade within Europe.

Non-European Markets Experience Decline

The primary driver of the downturn was a significant decline in exports to non-European markets. Deliveries to these buyers fell by 15%, with volumes shrinking to 380,921 m³ in Q1 2024 compared to the previous year. This drop saw the share of total exports to non-European markets fall by four percentage points to 31%.

Broader Implications for the Softwood Industry

The reduction in non-European exports is a trend that could reshape the trade dynamics for Germany’s softwood sector. With European demand holding steady, exporters may look to deepen their focus on intra-European trade to offset losses outside the region. Meanwhile, the decline in non-European markets could point to challenges such as increased competition, shifting demand patterns, or logistical bottlenecks in key global markets.

Outlook for the Coming Quarters

Industry stakeholders will be closely monitoring whether these trends persist in the coming quarters. Factors such as fluctuating global demand, exchange rates, and logistical challenges will likely influence the trajectory of Germany's softwood export market. For now, German producers may increasingly rely on the stability of European markets while exploring new opportunities for growth beyond Europe.