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October 12, 2020

Finland: Timber market slowdown caused reduced timber prices

Finland: Timber market slowdown caused reduced timber prices
  • Slowdown in the timber market reduced timber prices in Finland
  • Ongoing quiet year will turn into a slight rise next year in the logging and timber markets
  • Timber use will shrink and the share of imports will increase this year - domestic timber harvesting will decrease

The industrial action reduced the use of wood in Finland in the early part of the year, after which the global economic downturn caused by the corona pandemic has reduced the production of the forest industry and thus the need for wood.

More permanent changes in the use of wood in different parts of Finland are caused by changes in industrial production capacity. The use of spruce pulp wood will be reduced by the closure of the Kaipola mill in Jämsä, but the start of board production in Oulu will increase the use of softwood pulpwood by half a million cubic meters. Other planned investments in the sawmill and pulp industries will not have a significant impact on wood use this year and next.

Last year, the forest industry's use of wood in Finland fell by just over three per cent to 71 million cubic meters. The decline was greater in the wood products industry than in the pulp industry. This year, the wood use of the pulp industry will also clearly decrease and the wood use of the entire forest industry will shrink by almost a tenth from last year.

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