OTTAWA — We condemn in the strongest terms recent attacks by Iran on unarmed commercial vessels in the Gulf, attacks on civilian infrastructure including oil and gas installations, and the de facto closure of the Strait of Hormuz by Iranian forces. We express our deep concern about the escalating conflict. We call on Iran to cease immediately its threats, laying of mines, drone and missile attacks and other attempts to block the Strait to commercial shipping, and to comply with UN Security Council Resolution 2817. Freedom of navigation is a fundamental principle of international law, including under the United Nations Convention on the Law of the Sea. …We emphasise that such interference with international shipping and the disruption of global energy supply chains constitute a threat to international peace and security. …We express our readiness to contribute to appropriate efforts to ensure safe passage through the Strait.
US President Trump’s administration on Wednesday launched a trade investigation into excess industrial capacity in 16 major trading partners in a move to rebuild tariff pressure after the U.S. Supreme Court tore down the centerpiece of Trump’s trade policy last month. Canada is not named as one of the targets of the new probe. US Trade Representative Jamieson Greer said the Section 301 unfair trade practices investigation could lead to new tariffs imposed against China, the European Union, India, Japan, Mexico and South Korea by this summer. Other trading partners subject to the excess capacity probe include Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland and Norway. Trump and his team have made clear they’re seeking to replace the hundreds of billions of dollars in lost revenues after the Supreme Court’s February ruling. In this case, the administration is starting investigations under Section 301 of the Trade Act.
Fiber and glass are among the packaging substrates hardest hit by February closure and layoff announcements. Here are the North American facilities that have announced downsizing efforts:
The escalating crisis in the Middle East could extend transport times for Finnish forest industry products to Asia by several weeks. At the same time, freight costs may rise, and container availability could become increasingly uncertain. Iran has announced the closure of the Strait of Hormuz. According to international reporting, several major shipping lines have also paused or reduced traffic through the Suez Canal, redirecting vessels around Africa via the Cape of Good Hope on routes to Asia. The Strait of Hormuz is a critical artery for global oil trade, and disruptions there primarily push up energy prices. For Finland’s forest industry, however, access through the Suez Canal is more directly decisive. Approximately 20 percent of the forest industry’s exports go to Asia, and the majority of those shipments pass through the Suez Canal, says Maarit Lindström, Director and Chief Economist at Metsäteollisuus ry. 
Ukraine’s state forestry sector has reported its strongest financial performance to date. Despite operating during wartime conditions, the industry delivered a significant increase in profitability last year. The results were announced during the annual public report presented by Viktor Smal, head of the State Forest Resources Agency of Ukraine. According to the report, the state enterprise Forests of Ukraine generated net profits of UAH 6.9 billion, equivalent to approximately US$167 million. The result represents a 2.76-fold increase compared with 2024. The achievement is considered a milestone for the country’s forestry management system. Industry leaders attribute the growth largely to procurement reforms introduced after 2020. These reforms were designed to improve transparency and reduce financial leakage within the sector. …Profitability within the forestry industry also improved considerably. The sector recorded an overall profitability rate of 22.8%. This figure increased by 12.3% points compared with earlier results.
The outsized impact that oil prices have on the global economy means higher fuel and energy prices are all but guaranteed for many countries, not just those in the conflict region. …In the forest products sector, softwood lumber trade is one of the most directly exposed segments. Europe accounts for about one-third of the global softwood supply. Sweden and Finland are among Europe’s top exporters, along with Germany and Austria. …Lumber shipments out of Europe rely heavily on shipping routes through the Mediterranean, the Suez Canal, and the Gulf. Shipping costs are expected to escalate as fuel prices and risk premiums rise. Spikes in freight and insurance, along with rising energy costs in production and transport, could quickly start to make Nordic lumber less competitive while tightening margins. …Prolonged disruption in that region could force Nordic lumber producers to redirect volumes to Europe, North Africa, and Asia, causing price pressures in those markets.
WASHINGTON — The widening conflict in the Middle East following joint U.S.-Israeli strikes against Iran is introducing fresh uncertainty into global markets, with potential downstream effects for furniture importers, who despite relying more heavily on Asia-based sourcing than directly in the region are still exposed to volatility across the global supply chain. Analysts told Reuters that a broader regional conflict could disrupt global trade routes, supply chains and commodity prices, all of which have implications downstream for furniture importers by heaping pressure on both costs and capacity. Three potential effects of the ongoing unrest in the Middle East that could spill over for furniture companies include higher fuel costs and landed container prices, container capacity pressures, and risks and longer-term supply chain strains. Over the longer term, the conflict underscores the need to reassess geographic concentration risk.
Mercer posted Q4 earnings per share (EPS) of -$4.61 against a consensus estimate of -$0.83, a miss that signals the commodity cycle has gone from painful to existential. The headline driver was a $238.7 million non-cash impairment charge, including a $203.5 million write-down on its Peace River hardwood pulp mill. …International Paper’s Q3 2025 losses look alarming on the surface, with a $1.01 billion impairment on its Global Cellulose Fibers business and $675 million in accelerated depreciation from mill closures. But adjusted EBITDA came in at $859 million, up 28% sequentially. IP is taking pain by choice. Mercer is absorbing pain it cannot control. …IP’s pivot to pure-play global packaging via DS Smith gives it pricing leverage and diversified end markets. Mercer’s mass timber order book, at roughly $163 million in contracts including data center projects, is a genuine bright spot, but it cannot offset a pulp business bleeding cash.
US equities tumbled on Tuesday, undoing a Monday equity comeback, as oil prices spiked again and traders began to worry the U.S.-Iran conflict could drag on longer than anticipated. The Dow Jones Industrial Average lost 1,238 points, or 2.5%. If that holds, it would mark the blue-chip index’s first 1,000-point decline since April 10, 2025. The S&P 500 slipped 2.2%, while the Nasdaq Composite was down 2.3%. Brent crude oil, the international benchmark, topped $84 a barrel, up 8% Tuesday following a 6% spike Monday. WTI crude jumped 8% to above $77 a barrel after a 6% jump as well on Monday. Iranian Revolutionary Guard commander said the Strait of Hormuz — the world’s most vital transit route for crude oil — is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media.
European laminate flooring manufacturer sales declined 6.50% to 263.4 million m2 in 2025, according to the European Producers of Laminate Flooring (EPLF). The sales decreased from 281.6 million m2 in 2024. EPLF said the trend reflects the broader slowdown observed across construction markets, particularly in new residential builds and renovation activity, which continued to weigh on demand throughout the year. EPLF said the 2025 figures point to a “year of adjustment” for the laminate flooring sector. “While global volumes declined, demand remained comparatively more stable in the core European markets, which continue to represent the majority of EPLF sales,” it said. “Regional differences indicate that market conditions evolved at different speeds rather than following a single global pattern.” Europe accounted for more than 80% of total sales by EPLF member countries, confirming its position as the core market for the laminate flooring.
Timber imports into the United Kingdom declined to their lowest level in more than ten years during 2025. The data was reported by Timber Development UK (TDUK), the industry body representing the national timber supply chain. According to the organisation’s latest market review, total timber imports reached 9.1 million cubic metres in 2025. This figure represented a 2.2% decrease compared with the previous year. …Timber demand in the United Kingdom has now remained relatively flat for four consecutive years. …Softwood remains the dominant component of the UK timber market. The material accounts for approximately 61% of total timber imports. However, softwood imports declined by 4% during 2025. …Several traditional suppliers exported smaller volumes to the UK. Other suppliers partially offset these declines. Imports from Latvia and Finland increased during the same period. …Performance within the engineered wood category was uneven. Laminated veneer lumber and timber I-beams both recorded steady growth during the year.
Visit Canada Wood’s Market News for these stories and more:
The wood industry produces enormous quantities of lignocellulosic by-products, such as sawdust, and their incineration for energy recovery results in substantial carbon emissions and the loss of valuable raw materials. Here, we introduce struvite as a fully recyclable inorganic binder for the consolidation of sawdust into high-performance hybrid materials. The mineral binder is produced in situ by an enzymatically induced solution-mediated phase transformation driven by ureolytic protein bodies extracted from watermelon seeds. The resulting material exhibits excellent fire resistance with a long time to ignition (51 ± 1 s), low peak heat release (118 ± 2 kW m−2), and fast flame self-extinction due to efficient char-layer formation. Moreover, it displays high compressive strength (4.71 ± 0.37 MPa). Crucially for sustainability, the struvite binder can be recovered under mild aqueous conditions without loss of performance, offering a valid path toward a circular materials economy.
The Brussels-based Confederation of European Paper Industries (CEPI) has released a statement indicating the forests and “state-of-the-art recycling system” of Europe stand ready to serve European Union policies supporting “Made in Europe” objectives. “A ‘Made in EU’ competitiveness model should be anchored in sustainably sourced biomass, high quality recycled materials and European technological leadership across these sectors,” states CEPI. The forest products and paper sectors can help Europe “build a more resilient, future proof growth model,” continues the group, that can be less reliant on coal, gas and other fossil fuels. Among resources the continent has in abundance, according to CEPI, are “sustainably managed forests, efficient recycling systems and the industrial know how that powers them. This pragmatic approach aligns industrial policy with Europe’s bio-based, circular strengths and advances some of the Clean Industrial Deal’s (CID’s) original ambitions.”
HELSINKI, Finland — A groundbreaking investigation by researchers at the University of Helsinki is shedding new light on the relationship between wood surface treatments and bacterial survival, revealing profound implications for both public health and material science. The study meticulously analyzed how untreated and chemically treated wood surfaces influence the adhesion, survival, and transmission of bacterial species commonly found in indoor environments. This research challenges conventional perspectives on surface hygiene and opens avenues for reconsidering material use in everyday settings ranging from homes to healthcare environments. The research primarily focused on two bacterial species: Staphylococcus epidermidis and Pseudomonas aeruginosa. …By studying these organisms, the research team was able to capture a spectrum of bacterial behaviors and survival strategies on different wood substrates. …Although the study’s scope was limited, its findings offer valuable preliminary insights into the wider implications of material selection in construction and interior design.
HCM CITY — Canadian Wood Vietnam, part of Forestry Innovation Investment (FII) – a provincial agency of the Government of British Columbia (B.C.), Canada, has recently reaffirmed its commitment to the Vietnamese wood industry by maintaining a consistent presence across key industry platforms. Canadian Wood Vietnam is dedicated to enhancing networking activities, sharing information, and fostering professional exchanges within Việt Nam’s wood and furniture industry. In addition to promoting trade, Canadian Wood Vietnam works closely with manufacturers in Việt Nam by offering technical support, training programmes, and facilitating market development initiatives that link businesses with reputable Canadian softwood suppliers and provide valuable insights into softwood species from British Columbia (B.C.), Canada. These ongoing efforts aim to assist Vietnamese manufacturers in strengthening their product development capabilities, refining design applications, and enhancing value creation. 
Two of Sweden’s largest forest companies have called on the European Union to revise its bioeconomy strategy to include a stronger commitment to expanding sustainable wood supply, warning that current policy signals risk undermining Europe’s green transition goals. In a joint statement published this week, the chief executives of SCA and Holmen argued that the EU Commission’s updated bioeconomy strategy — released last November — underestimates both the economic weight of the wood-based sector and the primary biomass volumes needed to meet its own ambitions. The two executives estimated that wood-based value chains account for around seven per cent of total EU economic value and support approximately 17 million jobs across the continent — figures they said the strategy fails to capture by focusing narrowly on upstream production. The Commission’s own figure of roughly €240 billion in added value and fewer than three million jobs, they argued, represents less than a quarter of the sector’s true contribution.
As the EU’s Deforestation Regulation (EUDR) nears implementation this year, furniture giant IKEA may need stronger traceability systems to prove its timber isn’t linked to post-2020 deforestation. Although nearly all IKEA wood is FSC-certified or recycled, past investigations show this voluntary scheme can miss illegal or unsustainable logging. The EUDR requires geolocation data and stricter due diligence than existing certifications or regulations, but repeated delays and possible rule changes have created uncertainty for companies like IKEA preparing to comply. Industry watchdogs say high-profile companies like IKEA can “do more” to champion the landmark regulation and implement leading wood traceability systems, rather than relying solely on existing — voluntary— certification schemes.
The EU’s General Court has rejected a legal challenge aimed at reversing the European Commission’s decision to categorize forest biomass energy as a sustainable investment within the bloc’s green finance framework. The court’s decision, issued on 18 March 2026 dismissed an attempt to annul a Commission ruling from July 2022, which had turned down a request for an internal review of Delegated Regulation (EU) 2021/2139. This regulation set the technical criteria for determining which forestry management and bioenergy practices can be regarded as environmentally sustainable. The plaintiffs, including Robin Wood and six other environmental NGOs, contended that the Commission’s designation of forestry and forest bioenergy as sustainable was illegal and violated EU legislation, particularly the Taxonomy Regulation. These rulings affirm that the Commission possesses significant discretion in establishing and implementing the taxonomy’s technical criteria, allowing politically sensitive sectors like bioenergy.
In the fight against the climate crisis, countries are pinning great hope in reforestation projects. In a new study, ETH Zurich researchers show that the location in which reforestation is taking place is usually more important than the number of trees planted. If forests are strategically positioned, the same cooling effect could be achieved using half the area of land. Climate researchers at ETH Zurich show where planting trees makes the most sense with a view to achieving the greatest possible cooling effect on the climate. Reforestation in tropical regions has the greatest cooling effect. Tree planting in the northern hemisphere, on the other hand, reduces the reflection of sunlight and has no effect or even contributes to global warming. The cooling effect on the climate will be a maximum of 0.25°C by 2100. This contribution is important, but it cannot replace the urgently required reduction in greenhouse gas emissions. 
A new study with EFI contribution, 
New research has found that burning “smokeless” or low-smoke fuels may be causing new air pollution hazards on streets and in homes. Sold as alternatives to burning coal, wood and peat at home, tests reveal their smoke contains large quantities of tiny ultrafine particles, that can deposit themselves deep in our lungs. The findings were an accidental discovery while researchers were testing fuels in traditional and modern eco design stoves. As expected, burning alternative fuels, both smokeless coal ovoids and briquettes made from olive stones, produced less particle pollution compared with wood or coal. …For each kilogram burned, the low-smoke fuels produced between two and three times more ultrafine particles than wood or coal. …The size of the ultrafine particles means that they are deposited deep in the lungs, multiplying the health impact. In Dublin, the low smoke fuels accounted for more than half of ultrafine particles that can deposit in people’s lungs.