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Conlegno warns Gulf freight rates have jumped from US$500 to US$4,000 and DACH log prices are holding at €148/m³ — leaving Italy’s 2,000-plus mill operators running at near-zero margins.

Italian sawmills are running at near-zero or negative margins as Gulf container freight has jumped from US$500 per container to as much as US$4,000, whilst log prices across the DACH region of Germany, Austria and Switzerland remain at €148 per cubic metre. That is according to the latest Conlegno Study Centre report published on Tuesday, May 5 which warns that the conflict in Iran that closed the Strait of Hormuz, elevated roundwood prices and rising energy costs are eroding profitability across more than 2,000 member companies.

The perfect storm is hitting the sector,” the report finds.

And whilst weak European demand and oversupply would normally drag raw material prices lower, log values have instead remained historically high across the corridor, leaving Italian sawmills caught between elevated input costs and thin downstream pricing power. Conlegno describes the dynamic as a divergent binary effect, where soft demand fails to feed through to lower roundwood costs, squeezing the cash margin out of every cubic metre milled.

As it stands, Italy needs around four million cubic metres of softwood a year – the framing lumber, pallet wood and panel feedstock that supplies its construction and packaging sectors. Italian forests cover only about 20 per cent, with the rest shipped from Germany, Austria and the Czech Republic. That import exposure worsened sharply after Storm Vaia and the bark beetle infestation cut Trentino’s annual log supply from 500,000 cubic metres to as low as 250,000 cubic metres, with 2025 production projected at 450,000 cubic metres – well short of Trentino’s 1.25 million cubic metre post-Vaia milling capacity.

It traces back to Hormuz.

Following the Iranian Revolutionary Guard action that closed the Strait of Hormuz on 28 February, industrial diesel prices across Asia have climbed 140 per cent and ocean freight surcharges of up to US$5,000 per container have been baked into trade lanes that depend on Gulf transit. Maersk has separately applied to US regulators for an emergency bunker surcharge of US$200 per TEU on head-haul routes and US$100 per TEU on backhaul, with Drewry’s World Container Index holding at US$2,287 per 40-foot container as of 2 April.

It comes as Wood Central reported that the Hormuz crisis has driven Asian panel prices up by 15 per cent, with Indian wood panel makers raising prices by five to 15 per cent, and a Federation of Malaysian Manufacturers survey finding that nine in ten firms are either already affected or expect an impact within four weeks. The International Tropical Timber Organisation charts an industry-wide repricing from Kuala Lumpur to Bangalore to Ho Chi Minh City, with Italian panel prices rising by five to ten per cent – roughly half the Asian rate.

On the panel side, the European Commission’s 14 April 2026 decision to finalise definitive anti-dumping duties of 5.4 per cent on Brazilian softwood plywood — applied across an EU softwood plywood market valued at €600 million per year, of which €216 million was previously imported from Brazil –  has trimmed one source of low-cost competition for Italian and wider European panel makers. But that relief has been overrun by a sharper rise in log, energy and glue costs, with OSB up around ten per cent since the start of the year and particleboard and pine plywood also climbing across European mills.

Whilst Italian sawmills have modernised through Industry 4.0 investments and improved processing flexibility over the past 15 years, the wider continental sector continues to operate under structural pressure on raw material costs, with the European Organisation of the Sawmill Industry warning at the International Softwood Conference in Oslo last October that rising input prices are denting earnings across the continent. “Raw material prices have increased across Europe, denting profitability in the industry,” Tommi Sneck, president of the European Organisation of the Sawmill Industry, told delegates.

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The post ‘Perfect Storm’ Hits Italy’s Sawmills as Margins Run Near Zero appeared first on International Forest Industries.

WorkSafe New Zealand is partnering with Verian (formerly Kantar Public and Colmar Brunton) on the latest Workforce Insights Program survey to better understand the challenges and realities facing employers and workers in the forestry sector. Source: Timberbiz The survey is open until Friday, 29 May 2026. The results will be used by WorkSafe New Zealand to help improve health and safety in our sector. Key things to know: The survey takes about 15-minutes to complete. Everyone who completes it goes in a draw for NZ$500, as a thank you for taking part. Everything you say is confidential. Only the Verian research team will know who has completed the survey. Worksafe encourages you to take part in this survey, which has provided encouraging insights about forestry and other industries in recent years. It helps track health and safety performance over time, examining things like employer health and safety maturity; worker engagement, participation, and representation; and the impact of workplace safety culture. If you have any issues completing the survey, please contact Liam from Verian at liam.williams@veriangroup.com You can access the survey at https://safetree.createsend1.com/t/r-i-tuqjhtt-l-j/

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As extreme droughts become more frequent and severe, forests around the world are dying off at alarming rates. However, the interaction between tree species’ physiological strategies and local microenvironments that shapes landscape-scale dieback patterns remains poorly understood. Source: Timberbiz In a study published in Forest Ecology and Management on 13 May 13, researchers from the Xishuangbanna Tropical Botanical Garden (XTBG) of the Chinese Academy of Sciences revealed how two dominant pine species in Southwest China responded to the extreme drought of 2023. Their findings reveal that forest dieback is not uniform but is instead shaped by species-specific vulnerabilities and local environmental conditions. The study was conducted across 20 large forest plots (four hectares each) in Yunnan Province, a biodiversity hotspot that experienced an unprecedented eight-month drought between 2022 and 2023. The researchers used drone surveys, high-resolution satellite imagery, and environmental data to investigate a widespread dieback event affecting Pinus yunnanensis (Yunnan pine) and Pinus kesiya var. langbianensis (Simao pine). They systematically assessed the post-drought canopy mortality dynamics, water response trajectories, and recovery capacity of the two pine species. They also quantified the key drivers behind the spatial patterns of dieback. The results showed that the 2023 drought caused a sharp drop in the normalized difference water index (NDWI) for both species. However, their post-drought recovery paths diverged significantly. Areas of Yunnan pine dieback exhibited irreversible damage with no meaningful recovery. By contrast, Simao pine showed rapid but incomplete recovery, suggesting a lasting effect of the drought. Further analysis identified distinct constraints driving dieback in each species. For Yunnan pine, dieback was primarily driven by intrinsic stand traits, such as tree age, canopy height, and soil potassium levels. Older stands and those with nutrient imbalances were far more likely to collapse. For Simao pine, the dominant factor was topography, especially slope aspect and steepness. South-facing slopes, which receive more solar radiation and experience greater water loss, were disproportionately affected. The study generated spatially explicit risk maps, revealing that dieback hotspots are disproportionately located near the distributional margins of both species. Populations living at the edge of their physiological limits are most vulnerable to climate-driven extremes. “Our results provide new mechanistic insight into species-specific drought vulnerability. Effective adaptation strategies must move beyond generalized assessments toward species- and site-specific interventions. It is necessary to integrate multi-scale observations, such as unmanned aerial vehicle (UAV) and satellite data, to improve the accuracy of forest mortality predictions,” said FAN Zexin of XTBG.

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An award-winning documentary about BC’s wildfire crisis is now available for anyone to watch free on YouTube. BC Is Burning went public May 20, released online after more than a year of community screenings across the province. Source: Castanet The film, produced and directed by retired forester and filmmaker Murray Wilson, and Kelowna entrepreneur Rick Maddison, examines how forest conditions, climate, fuel accumulation and land management practices are driving wildfire risk in British Columbia. “This film started as an attempt to better understand why wildfire seasons are becoming more destructive and what practical steps may help reduce future risk,” said Mr Wilson. The documentary features foresters, wildfire researchers, emergency management professionals and Indigenous voices, and looks at the growing toll fire and smoke are taking on communities across western Canada. “The response from communities across BC showed there is a real appetite for thoughtful, respectful discussion around forests, wildfire, and community safety,” Mr Wilson said. www.youtube.com/watch?v=Zj6upr0XYIc&feature=youtu.be

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Ponsse is expanding its range of harvester heads. The new Ponsse DH7 harvester head is designed for demanding harvesting in eucalyptus plantations, where its strong debarking properties enable high productivity. Source: Timberbiz “DH7 offers a more efficient and durable tool for harvesting eucalyptus plantations. We have also developed it from an operating cost perspective: easy maintenance, better structural durability and improved fuel economy directly affect harvesting productivity,” said Markku Savolainen, Product Manager for Ponsse harvester heads. The DH7 harvester head can be used in Ponsse harvesters (Cobra, Ergo, Bear) as well as a harvester head for a tracked machine. “Easy maintenance, better structural durability and improved fuel economy directly affect the productivity of logging,” Mr Savolainen said. The new harvester head has a maximum feed speed of six meters per second. The DH7 comes standard with the Opti 5G information system and OptiFeedControl control logic, which simplifies the control of the harvester head and the debarking of eucalyptus trunks. The DH7 is available with the HH360 rotator as an accessory, which allows unrestricted rotation of the harvester head, thus increasing the smoothness of the harvesting process. The rotator also further extends the service life of the connecting hoses. “The new DH7 strengthens Ponsse’s position as a developer of harvesting solutions for eucalyptus plantations. It is important for us to be close to our customers in areas where plantations are a central part of forestry. We develop products that have a clear and practical benefit in everyday harvesting,” said Ponsse’s Sales, Service and Marketing Director Marko Mattila. The previous Ponsse debarking harvester head model (H7HD Euca) will also remain in the product range, meaning customers can choose the product that best suits their operations.

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A nationwide campaign launching today celebrates a century of publicly funded science organisations in Aotearoa New Zealand and showcases how research and innovation have shaped the economy, environment, health and everyday life. Source: Timberbiz The Science working for New Zealand – 100 years and counting campaign marks 100 years since the Department of Scientific and Industrial Research (DSIR) was formed – the first government department established specifically to co-ordinate and invest in science. Run in partnership with Science New Zealand, the campaign brings together stories from the Bioeconomy Science Institute Maiangi Taiao, Earth Sciences New Zealand and PHF Science that demonstrate how scientific research has delivered lasting benefits, and why it remains critical for the future. The stories also highlight work from other organisations linked to the legacy created by the DSIR, including Antarctica NZ and the new NZ Institute for Advanced Technology. These stories showcase how science has helped protect New Zealand and New Zealanders, delivered new technologies to help business and industry thrive and enhance export value, and enabled rapid response to human, plant and animal disease outbreaks. They highlight how science has created and enhanced products and production systems, improved the way the world understands forensic evidence, monitored climate, water and land changes, helped people better manage and connect with the environment – and much more. Bioeconomy Science Institute transition chief executive Mark Piper says the centenary is an opportunity to recognise the long-term value of science and the people and partnerships behind it. “For 100 years, New Zealand’s publicly funded science has helped growers and foresters lift productivity, supported healthier homes and communities, protected our unique ecosystems, strengthened biosecurity and created new industries and technologies. “This campaign brings those impacts together and points to the next generation of challenges and opportunities where science will be essential,” he said. All stories can be read online at www.scienceworkingfornz.co.nz

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The 2026 Victorian and Tasmanian Timber & Hardware Industry Awards lit up Arts Centre Melbourne bringing together businesses and industry leaders from across both states for a night dedicated to industry excellence. Source: NTHA Award categories highlighted achievements across safety, retail, trade, off-site manufacturing, supply and individual sales performance. National Timber and Hardware Association (NTHA) Chief Executive Officer David Little presented the awards, alongside renowned 3AW broadcaster Darren James, who kept the audience entertained throughout the evening with his trademark humour and engaging interviews with winners. Major sponsors including ITI Australia, Total Tools Hardware Group (TTHG), Big River Group, Parkside Timber and HBT National Buying Group. “Also supporting tonight are our category partners NCI, First Super and Sage Insurance. These sponsors are crucial to our members, particularly the smaller ‘mum and dad’ independents who need support from people who understand the industry and their businesses,” Mr Little said. The following businesses and individuals were recognised for their outstanding achievements: Trade Store of the Year – Provans Mitre 10 Timber Supplier of the Year – Meyer Timber Retail Store of the Year Under 2500sqm – Brighton Hardware Hub Retail Store of the Year Over 2500sqm – TM&H Mitre 10 Best Off-Site Manufacturing Award – Major Timber & Trusses Building Materials Supplier of the Year – Paslode Retail Hardware Supplier of the Year – Selleys Supplier Sales Representative of the Year – Glenn Brown – Takasho Safety Champion Award – Patrick Moseley – Murphy’s Mitre 10   Trade Store of the Year winner Provan’s Mitre 10 Director Marnie Rosenberg, alongside General Manager Jamie Sloan, said they were thrilled to be recognised among such incredibly strong competition. Ms Rosenberg reflected on the store’s proud history, saying that originally established in 1903, the business was taken over by the Rosenberg family in 1966 and is still run by her brother Jarrod and herself. Presenting the award, Mr Little praised the business’s legacy and reputation within the sector. “You are the real thing — a multi-generational store that is highly respected throughout the industry,” he said. Meyer Timber claimed the Timber Supplier of the Year Award, with Stephen Meyer saying he and his brother David had proudly run the business for more than 28 years after it was founded by their father, Mel Meyer, in 1975. The company now employs more than 200 people. “We work hard and prioritise our customers and the people within the business, and we are very proud of what we do,” Stephen said. “We service hard-working people and do our best to help them through tough times.” Retail Store of the Year (Under 2500 Square Metres) was awarded to Brighton Hardware Hub, with owners Dave and Karena Moore recognised for creating a highly community-focused business. Mr Moore said he purchased the store five years ago after spending more than 30 years in the horse industry. “We have a great community. they really get behind us and support us, which is fantastic,” he said. “We only want to keep getting better.” Retail Store of the Year (Over 2500 Square Metres) was awarded to TM&H Mitre 10, with Laura Town and her father Jeff Hitchins accepting the honour on behalf of the business. Mr Hitchins said the key to the success of the family run business was continuing to work hard through both the good, and challenging times. “We are always trying different things and creating a store customers want to come into — something that stands out from the norm,” he said. “Our staff are fully on board and help our family achieve what we need to. I’d like to thank my son James, who looks after the trade side of the business, my daughter Laura, who manages retail, and Belinda, who oversees the financial side of the business.” Retail Hardware Supplier of the Year was awarded to Selleys in recognition of the company’s outstanding service, support and trusted range of quality products. Selleys representatives, Ben Routledge and Allan Cook, have been with the business collectively for 43 years. They said while Selleys continues to back products tradespeople and customers know and trust, the company also remains focused on innovation, including the release of products such as Liquid Nails Flex. Best Off-Site Manufacturing Award Winner Major Timber & Trusses was recognised for consistently delivering high-quality products while maintaining best practice across safety, sustainability and workforce development. Representatives Mark Holmes (General Manager) and Nathan Worner (Operations Manager) said the business, which employs 38 staff across two sites, has built a strong reputation for its trusses and, more recently, wall framing solutions. Building Materials Supplier of the Year was awarded to Paslode in recognition of the company’s commitment to supporting the trade industry through innovation and collaboration with retailers and trade professionals. Lachlan Walker from Paslode said innovation remains at the heart of the business, with a strong focus on understanding the challenges faced by local builders and developing products locally to meet their needs. Supplier Sales Representative of the Year was awarded to Glenn Brown of Takasho, who said he was both surprised and honoured to receive the recognition. “Just to get a nomination was special, but to win has blown me away,” he said. “We are on the road a lot, so I’d love to thank my family and colleagues, especially our Managing Director Andrew Hogg. We work tirelessly and thank you to the independents for always supporting us.” The Safety Champion Award was presented to Patrick Moseley of Murphy’s Mitre 10 for consistently going above and beyond in workplace safety and inspiring colleagues to remain vigilant and committed to safe work practices. The next major industry awards on this year’s calendar will be the Queensland Timber and Hardware Industry Awards, set to take place at Rydges South Bank Brisbane on 18 July. You can book tickets here https://events.ntha.com.au/events/nationaltimberhardwareassociationntha/2190166

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Victorian bureaucrats have finally approved the sale of 7000 tonnes of salvaged timber from Wombat Forest after delays left most wood suitable only for firewood. Source: The Weekly Times It has taken five years for Victorian government bureaucrats to approve the salvage and then sale of 7000 tonnes of windblown timber from the Wombat Forest. Most of the timber is split and can only be used for firewood, after sitting on the forest floor after storms hit the region in 2021 and then in a paddock after being salvaged. While Forest Fire Management Victoria has wanted to sell the timber earlier, its overseers in the Department of Energy, Environment and Climate Action have dithered, concerned at the political backlash from environment groups if log trucks were once again seen on Victorian highways. FFMVic acting deputy chief fire officer Vincent White said “a huge number of trees fell in the 2021 storms (but) many have been left in the forest to provide habitat and other environmental benefits. “We have only removed them where necessary to reduce bushfire and other safety risks. “In January 2025, we responded to a fire in the forest near Barkstead where it took first response crews 3 times longer than usual to create a control line around the fire as they needed to cut a path through storm debris. “Now, we are in a much better position to respond to fires quickly, and better protect communities, critical assets and the environment.” Timber and firewood businesses have the opportunity to buy the storm debris on 26 May and can register to take part in the auction by emailing forest.by-products@deeca.vic.gov.au  

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