European Union exports of softwood lumber to the Middle East and North Africa fell by approximately 13.8% in the first seven months of 2026 compared with the same period of 2025. However, this overall decline hides significant differences between destination markets: Gulf countries lost roughly one third of their volumes, while Egypt emerged as one of the strongest sources of demand for European wood.

For producers, sawmills and exporters across the European wood industry, these developments point to an important redistribution of international timber flows. 🪵

Gulf markets lose ground for European wood exporters

One of the most significant changes in 2026 has been the decline in shipments of softwood lumber and other wood products to Gulf markets. Aggregate volumes fell by around one third amid higher logistics costs, shipping disruptions and continuing uncertainty affecting regional maritime routes.

Traffic through the Strait of Hormuz remained well below 2025 levels, forcing some companies to rely on alternative ports and additional road transport. These changes increase logistics costs and can reduce the competitiveness of European softwood timber in markets such as Saudi Arabia, the United Arab Emirates, Qatar, Bahrain and Kuwait.

July data nevertheless indicated some stabilization. EU lumber exports to the MENA region reached approximately 750,400 m³, only 0.8% below July 2025 levels. This suggests that regional demand for wood has not disappeared, but has instead shifted between markets and trade routes. 📦

Egypt offsets part of the decline

In contrast with Gulf markets, Egypt significantly increased its purchases of lumber. The country remains one of the most important destinations for European softwood lumber, particularly for suppliers from Finland, Sweden, Austria and other major European timber-producing countries.

In June 2026 alone, Egyptian importers purchased approximately 495,400 m³ of lumber from international suppliers, up around 89% compared with the same month a year earlier.

Egypt`s geographic position is also commercially important. Its Mediterranean and Red Sea ports allow access to international wood and timber supply chains without direct dependence on transit through the Strait of Hormuz.

What does this mean for the European wood industry?

For European companies active in wood production, sawmilling and timber trading, the 2026 market highlights the importance of export diversification.

Lower shipments to some Gulf countries may encourage producers to focus more strongly on markets such as Egypt, Algeria, Morocco and other North African economies, where construction and infrastructure activity continue to generate demand for softwood lumber and other wood products.

These developments should also be assessed together with raw material costs, freight rates and log availability. For a broader view of the sector, see the WoodBusinessPortal.com analysis of the wood market in 2026, including prices, demand and industry trends.

Wood prices and logistics are becoming increasingly important

For exporters of wood, lumber and processed wood products, sales volumes represent only one component of competitiveness. Freight costs, marine insurance, container availability and raw material prices can quickly change commercial margins.

The pressure created by elevated log costs and relatively stable sawn timber prices is also visible across Europe. A recent WoodBusinessPortal.com market analysis highlights how high log prices are putting pressure on sawmill margins.

Companies looking to buy or sell timber can also use the WoodBusinessPortal.com marketplace to browse wood products, timber offers, purchase requests and suppliers from international markets. 🪵

Outlook for the remainder of 2026

The development of European softwood lumber exports during the final months of 2026 will depend largely on shipping conditions, freight costs, construction activity and demand from North African markets.

If logistics disruptions affecting Gulf markets continue, European producers may redirect additional volumes toward Egypt and other Mediterranean destinations. Conversely, an improvement in maritime transport conditions could support a partial recovery in exports to Gulf countries.

For companies throughout the international wood supply chain, monitoring these flows is increasingly important for identifying new export opportunities and anticipating changes in wood prices, lumber demand and international timber trade.

Sources:
Eurostat
Lesprom Network
Wood Central

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