Austrian Softwood Exports: MENA Down 24.2%, Asia Down 26.3%

Softwood Exports Drop Across Key Markets

Austrian softwood timber exports to the Middle East and North Africa (MENA) fell 24.2% in the five months leading up to May. This region, which imported more Austrian timber than Germany in the previous year, now accounts for a smaller share.

Statistik Austria trade figures, presented by the Fachverband der Holzindustrie Österreichs at the 58th Internationale Holzmesse in Klagenfurt, show Austria’s total softwood exports to all markets decreased by 10.6% to 2.51 million cubic meters during this five-month interval.

Franz Teuschler, chairman of Austria’s timber trade, attributed the decline to a collapse in demand following military escalation in the Gulf and a simultaneous sharp rise in freight costs, projecting lower sales and margins for 2026.

Asian Market Sees Significant Reduction

Beyond the MENA region, other major markets for Austrian softwood also experienced contractions. Exports to Italy, which represented 44.5% of the 2.51 million cubic meters shipped, fell 4.5% year-on-year. Shipments to Germany declined by 10.2%, and North America saw a substantial 45.5% decrease.

Notably, exports to Asia, including Japan, were down 26.3% during the first five months of 2026, following a 5.3% growth in the overall trade to 6.06 million cubic meters in the previous year. The only market segment showing growth was the rest of Europe, which increased by 4.6%.

Production Forecasts and Construction Downturn

The Fachverband der Holzindustrie Österreichs projects Austria’s sawn timber production to fall to 9.3 million cubic meters in 2026. This marks a reduction from 9.6 million cubic meters in 2025 and is below the ten-year average of 10.0 million cubic meters, representing the lowest production level since 2015.

Gunter Deuber, head of Raiffeisen Research at Raiffeisen Bank International, stated that the current construction recession is primarily an Austrian phenomenon, driven by domestic factors. He forecasts Austrian construction investment to decrease by another 1.5% this year, marking a third consecutive annual decline after falls of 2.3% in 2025 and 5.9% in 2024. A sustained recovery is not anticipated until well into the 2030s.

Implications for Asian Procurement

The significant reduction in Austrian softwood exports, particularly the 26.3% decline to Asia, indicates that procurement directors and specifiers in the region may need to reassess their sourcing strategies for timber.

Olle Berg, executive vice president of Setra Group, previously noted the necessity of identifying alternative markets and products, especially for thicker pine timber classes, given rising bunker costs and reduced Middle East volumes.

Asian buyers should evaluate potential supply chain adjustments, explore alternative timber origins, and confirm lead times and pricing from existing suppliers to mitigate risks associated with reduced availability from traditional European sources.