The Finnish forest industry’s production and export volumes, except for paper, will increase over last year’s. Demand is highest for sawnwood, pulp and cardboard. According to Finnish Forest Sector Economic Outlook, released by Natural Resources Institute Finland, the competition will lead to falls in export prices in all main product groups except plywood this year, but prices will stabilise next year.
The consumption of forest chips is expected to grow to around 8.2 million m3
The low prices of fossil fuels and emissions allowances alongside uncertainties about subsidy policy are holding back investment decisions and curbing growth in forest energy use.
The consumption of forest chips is expected to grow to around 8.2 million m3 (solid volumes) this year, with equal figures forecast for next year. Correspondingly, the average purchase price of forest chips at plants in 2016 and 2017 is expected to remain at almost the same level as in 2015. This year, the production of wood pellets in Finland will remain equal to last year’s level, but will increase by a few percent next year.
Lively timber market with moderate price trends
As the use of timber in the forest industry grows, commercial fellings will rise in Finland this year to 59.5 million m3 and to 61.8 million m3 next year. Roundwood imports will rise slightly this year.
The stumpage prices of spruce sawlogs will rise only slightly this year, as demand for spruce sawnwood is good but export prices are rising only moderately. The increasing use of spruce pulpwood in cardboard manufacturing will raise stump prices slightly. The stumpage prices of other timber assortments will fall this year. Next year, the increase in softwood pulp production will increase demand for pine pulpwood and raise its stump price.
In non-industrial private forestry, gross stumpage earnings will rise this year to around EUR 1.7 billion, and to slightly more next year. The operating profit per hectare of private forests will be EUR 110 in 2016 and EUR 115 in 2017.” (Luke News)
The original news article can be found from the news section of GREBE partner Luke under: https://www.luke.fi/en/news/close-to-record-high-sawnwood-export-volumes/