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October 8, 2020

Finland: Weak ability for sawmills to pay for raw materials due to low export prices of lumber

Almost 500 million cubic meters of lumber were produced worldwide last year, of which almost three quarters were coniferous lumber. Last year more than 12 million cubic meters of lumber were produced in Finland. Finland's share of total world production was less than three percent. This ongoing year Finnish lumber production will decline, because of the industrial action at the beginning of the year, the corona crisis, and the closing of Stora Enso’s Kitee sawmill, which was closed last year.
The weakened ability of sawmills to pay for timber due to the current low export prices of lumber may slow down the timber trade towards the end of the year. In addition, buyers and sellers have differing views on wood prices, which is common after a drop in prices from the higher level of the previous years.

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