Finnish wood products manufacturer Koskisen said that market conditions during the third quarter of 2026, with demand remaining subdued across several product categories. Construction activity continued to influence purchasing decisions, while uncertainty over costs and pricing persisted in key markets.<\/p>\n
Koskisen also provided an update on production, raw material availability and investment plans. Its assessment offers a closer look at how current market conditions are affecting both the sawn timber and wood-based panels businesses, as well as expectations for the remainder of 2026 and into 2027.<\/p>\n
Market and operating environment<\/strong><\/p>\n How have demand for sawn timber and the product mix developed during Q3 relative to expectations and normal seasonality?<\/em><\/p>\n Koskisen:<\/strong> Demand for sawn timber has been in line with our forecast and normal seasonal patterns, but remains weak.<\/p>\n How has sawn timber pricing developed during Q3, and is rising inflation affecting pricing conditions?<\/em><\/p>\n Koskisen:<\/strong> Sawn timber prices declined slightly compared with the previous quarter. Weak demand continued to make it difficult to pass higher costs through to selling prices.<\/p>\n How has birch plywood pricing developed during Q3, and is there pressure for price changes?<\/em><\/p>\n Koskisen:<\/strong> Birch plywood prices increased slightly compared with the previous quarter. The uncertain market situation continues to delay the full transfer of cost increases to market prices.<\/p>\n How has the birch plywood sales mix developed in Q3, and has this affected the average price compared with Q2?<\/em><\/p>\n Koskisen:<\/strong> There were no significant differences in the birch plywood sales mix between Q2 and Q3. The average price increased slightly compared with the previous quarter.<\/p>\n Have there been any changes in demand? Are there geographical differences?<\/em><\/p>\n Koskisen:<\/strong> There have been no significant changes in demand in either direction.<\/p>\n In the US, long-term mortgage rates have continued to rise, which has had a significant impact on local demand. The US accounts for approximately one-third of the global sawn timber market, so weak demand there is also felt elsewhere in the world.<\/p>\n Has the rise in market interest rates affected expectations for construction sector demand and recovery during the remainder of 2026 and in 2027?<\/em><\/p>\n Koskisen:<\/strong> The downturn in the construction sector has continued, and demand for wood products used in construction has remained moderate.<\/p>\n The recovery of the construction sector continues to depend largely on developments in consumer confidence. At present, rising interest rates are delaying the recovery in demand, particularly in residential construction and renovation.<\/p>\n There has been considerable discussion about positive economic expectations for 2027 and beyond. Have there been signs of greater optimism among customers, such as more requests for quotations or other enquiries?<\/em><\/p>\n Koskisen:<\/strong> Positive economic expectations have not yet materialised in our sales channels.<\/p>\n On the contrary, recent interest rate increases are delaying the recovery in demand, particularly in residential construction and renovation.<\/p>\n Has the purchasing behaviour of Central European customers changed since the summer holidays?<\/em><\/p>\n Koskisen:<\/strong> Before the summer holidays, customers typically build up inventories for the season and to cover production shutdowns. Demand is therefore normally more moderate after the holidays.<\/p>\n This year, however, post-holiday demand from Central Europe has been weaker than usual. Customers are currently ordering strictly according to their needs.<\/p>\n Has the rise in market interest rates during Q3 further weakened the already low demand for chipboard?<\/em><\/p>\n Koskisen:<\/strong> Demand for chipboard has remained consistently weak.<\/p>\n A recovery in chipboard demand depends on an improvement in domestic construction and renovation activity.<\/p>\n Did the occasional improvement in chipboard demand towards the end of Q2 continue, or was it only inventory purchasing?<\/em><\/p>\n Koskisen:<\/strong> Demand for chipboard has remained weak.<\/p>\n Could accelerating data centre construction create direct or indirect growth opportunities for Koskisen in Finland or other markets over the coming years?<\/em><\/p>\n Koskisen:<\/strong> Data centre construction is one of the growing areas of construction and infrastructure, and we monitor it as part of market developments.<\/p>\n At this stage, we estimate that its impact on Koskisen will be mainly indirect.<\/p>\n How has the escalating situation in the Middle East affected the business, particularly operating costs?<\/em><\/p>\n Koskisen:<\/strong> Higher prices for oil- and gas-based energy have increased energy and freight costs, as well as prices for oil-derived raw materials such as adhesives.<\/p>\n Higher fuel costs have also increased wood harvesting and transportation expenses.<\/p>\n These price increases have, in turn, created inflationary pressure, to which central banks have responded by raising policy interest rates.<\/p>\n Higher costs have been partly passed through to product prices, but the uncertain market situation has slowed this process.<\/p>\n Can you quantify the oil-driven increase in logistics costs during Q3, both quarterly and annually?<\/em><\/p>\n Koskisen:<\/strong> Over the past year, wood harvesting and transportation costs have increased by approximately 10%.<\/p>\n Part of the increase in freight costs can be passed on through freight clauses in sales contracts, but freight costs have nevertheless risen significantly.<\/p>\n The distribution of sales between geographical markets has a substantial impact on the development and comparability of freight costs.<\/p>\n How have prices for raw materials other than wood developed towards the autumn?<\/em><\/p>\n Koskisen:<\/strong> The most significant increases have been in adhesives and coatings used in the Panel Industry.<\/p>\n Their prices increased early in the year and stabilised during the summer, but remain higher than during the corresponding period last year.<\/p>\n Operations<\/strong><\/p>\n How did the production ramp-up proceed at the Sawn Timber Industry units following the summer shutdowns?<\/em><\/p>\n Koskisen:<\/strong> The production ramp-up in the Sawn Timber Industry proceeded according to plan.<\/p>\n How did the ramp-up of birch plywood production proceed after the summer shutdown?<\/em><\/p>\n Koskisen:<\/strong> The ramp-up of birch plywood production proceeded according to plan.<\/p>\n As planned, the birch log ice storage was opened only after the summer shutdown, as sufficient raw material had been available for production during the first half of the year.<\/p>\n How did the installations under the Panel Industry investment programme proceed during the shutdown, and how has the subsequent ramp-up developed? Has this affected profitability?<\/em><\/p>\n Koskisen:<\/strong> The ramp-up of the new veneer handling equipment installed during the summer shutdown went well.<\/p>\n The ramp-up of new technology commissioned earlier continued to have some negative impact on production volumes and production costs.<\/p>\n How did shift production develop at the J\u00e4rvel\u00e4 sawmill during Q3?<\/em><\/p>\n Koskisen:<\/strong> Shift production improved slightly but remained below target.<\/p>\n How has the ramp-up of the new channel kilns at the J\u00e4rvel\u00e4 sawmill progressed?<\/em><\/p>\n Koskisen:<\/strong> The ramp-up of the channel kilns proceeded according to plan and on schedule.<\/p>\n The channel kilns have been in production use since mid-June.<\/p>\n How long were the maintenance shutdowns during Q3?<\/em><\/p>\n Koskisen:<\/strong> Maintenance shutdowns in the Sawn Timber Industry and the Panel Industry take place in July and around the turn of the year.<\/p>\n In the Panel Industry, the summer shutdown typically lasts three to four weeks. In the Sawn Timber Industry, it lasts approximately two weeks, depending on the department and production site.<\/p>\n Around the turn of the year, the shutdown typically lasts two to three weeks in the Panel Industry and approximately one week in the Sawn Timber Industry.<\/p>\n What production shutdowns are planned across the different units around Christmas and the turn of the year?<\/em><\/p>\n Koskisen:<\/strong> In the Sawn Timber Industry, shutdowns are planned to last between one and three weeks.<\/p>\n At the J\u00e4rvel\u00e4 sawmill, the second phase of the green sorting plant renewal will be carried out, extending the shutdown.<\/p>\n In the Panel Industry, the shutdown will last approximately one to three weeks, depending on the product group.<\/p>\n Have new investment targets been identified for 2027, or are any being planned?<\/em><\/p>\n Koskisen:<\/strong> In 2027, the plan is to carry out smaller development projects related to the major investments already completed, rather than undertaking large new investments.<\/p>\n The most active investment phase is behind us for now.<\/p>\n Our focus is on obtaining the full benefits of the investments already made in order to improve productivity and efficiency.<\/p>\n How do you expect the company's cash flow to develop in Q3 and beyond?<\/em><\/p>\n Koskisen:<\/strong> We have seen a slight decrease in working capital.<\/p>\n Liquidity is currently at a good level, and the company's investment expenditure is expected to decline in the near future.<\/p>\n Can you explain the reasons behind the change of Director of the Panel Industry? Who is currently leading the division?<\/em><\/p>\n Koskisen:<\/strong> The change of Director of the Panel Industry is related to ongoing productivity and efficiency measures.<\/p>\n At the same time, the Panel Industry management team has been streamlined to create a clearer structure for implementing these measures and managing the business.<\/p>\n Recruitment of a new director is underway, and Koskisen CEO Jukka Pahta is acting as interim Director of the Panel Industry.<\/p>\n Wood procurement and forest energy<\/strong><\/p>\n How did wood procurement develop during Q3, and what is the general situation in the wood market? Is wood available, and how has trading activity developed?<\/em><\/p>\n Koskisen:<\/strong> Wood procurement proceeded according to plan during Q3.<\/p>\n Wood trading volumes were lower than normal for the season.<\/p>\n Nevertheless, wood inventories remained approximately at the target level.<\/p>\n The seasonal decline in log prices has so far been limited. What are the reasons for this, and is the situation expected to change during the remainder of the year?<\/em><\/p>\n Koskisen:<\/strong> Wood supply has generally been low, which in our view has kept price developments in the wood market stable.<\/p>\n We do not expect significant changes in price levels during the remainder of the year.<\/p>\n Log prices remain too high relative to finished product prices and the current level of production costs.<\/p>\n How have by-product prices developed, and have prices for forest energy been negotiated for the coming winter season?<\/em><\/p>\n Koskisen:<\/strong> Prices for by-products and forest energy have remained stable.<\/p>\n For forest energy, prices for the upcoming heating season have largely been agreed.<\/p>","protected":false},"excerpt":{"rendered":" Finnish wood products manufacturer Koskisen said that market conditions during the third quarter of 2026, with demand remaining subdued across several product categories. Construction activity continued to influence purchasing decisions, while uncertainty over costs and pricing persisted in key markets.<\/p>","protected":false},"author":1,"featured_media":100241,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n
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