The mood at the 70th International Softwood Conference (held this year in Copenhagen was one of caution and concern. With global markets cooling off and many producing countries in Europe struggling with exceedingly high log and energy costs, some sawmillers expect losses – and increasing losses – for the rest of fourth quarter as well as first quarter in 2023. With too much production already evident in the market, European mills are not yet slowing down enough despite all of the red flags of shrinking demand already evident. This means that more European sawmill curtailments will occur in the short-term. …European lumber producers are also facing the proposed EU Deforestation Regulation. Once it has come into effect in the next 1-2 years, all business activities must be “deforestation- free” – which requires extensive documentation. If implemented, it could seriously restrict the harvesting of some forests, reducing the log supply in various countries in Europe.