Stora Enso has increased its wood purchases in Finland this year, despite a sharp decline in timber trading across the country. The company reached its second-quarter procurement target and expects demand from its mills to remain at planned levels through the rest of the year, supported by additional sawmilling capacity and the new consumer packaging board line in Oulu.<\/p>\n
Finland's timber market has been quieter than a year ago, with nationwide wood purchasing volumes running approximately 20% below the corresponding period last year. Stora Enso, however, reports a different trend in its own procurement operations.<\/p>\n
\u201cAcross Finland, timber trade volumes are about one-fifth behind last year, but the situation at Stora Enso is good,\u201d said Tuomas Tiilikainen, head of wood procurement in Finland at Stora Enso.<\/p>\n
After a slower winter, the company met its purchasing target in the second quarter and has acquired more wood so far this year than during the corresponding period last year. June was particularly active, according to Tiilikainen.<\/p>\n
Additional mill capacity supports wood demand<\/strong><\/p>\n Stora Enso attributes its higher domestic wood requirements to increased production capacity in both sawn timber and packaging board. Two developments have contributed to the change: the commissioning of the new consumer packaging board line at Oulu and the acquisition of Junikkala's three sawmilling units.<\/p>\n The additional capacity has increased the group's requirements for Finnish wood at a time when timber purchasing activity elsewhere in the country has slowed.<\/p>\n Tiilikainen said the mills' wood requirements for the remainder of the year remain in line with production plans, allowing the company to maintain its procurement targets.<\/p>\n He also pointed to early signs of improvement in the general economic environment, although Finland's forest industry continues to face difficult conditions in several end markets.<\/p>\n Finnish sawlog prices stabilise at elevated levels<\/strong><\/p>\n Finnish wood prices have steadied after declining from their previous peaks during the second half of last year. Sawlog prices remain relatively high, while pulpwood prices have settled at considerably lower levels.<\/p>\n According to the national stumpage price statistics supplied by the Finnish Forest Industries Federation, spruce sawlogs averaged EUR 84.61\/m\u00b3 in regeneration fellings, compared with EUR 79.68\/m\u00b3 for pine sawlogs. Birch sawlogs averaged EUR 62.63\/m\u00b3.<\/p>\n Thinning prices were lower, with spruce at EUR 72.18\/m\u00b3, pine at EUR 69.95\/m\u00b3 and birch at EUR 53.38\/m\u00b3. Prices for first thinnings were substantially below those paid for regeneration fellings.<\/p>\n Source: Mets\u00e4teollisuus ry \/ Stora Enso. Nationwide four-week averages.<\/p>\n The figures show the considerable difference between sawlog and pulpwood prices. In regeneration fellings, spruce sawlogs fetched more than three times the price of spruce pulpwood, while pine sawlogs were priced at a similar multiple of pine pulpwood.<\/p>\n Stora Enso cautioned that national averages do not necessarily represent prices in its own procurement areas. Individual transactions depend on timber quality, stem size, harvesting conditions, transport distances and proximity to consuming mills.<\/p>\n Tiilikainen said sawlog prices remain attractive from the forest owner's perspective and should not prevent timber sales from proceeding.<\/p>\n Stora Enso offers incentives to secure autumn supply<\/strong><\/p>\n The company is also offering financial incentives to encourage private forest owners to conclude timber sales during the autumn.<\/p>\n For eligible summer-harvestable thinning stands, Stora Enso is offering advance payments of up to 50% when timber sales are agreed during the campaign period.<\/p>\n It has also extended a programme offering 5% interest on timber sale proceeds deposited in its T\u00e4htitili account for up to two years. The account allows forest owners to withdraw funds without charges or loss of accrued interest under the programme's stated terms.<\/p>\n The offers are intended to encourage timber sales at a time when some forest owners may prefer to postpone harvesting in anticipation of higher prices.<\/p>\n For Stora Enso, maintaining wood purchases is particularly important following its recent capacity additions. The Oulu board investment and Junikkala sawmills have increased the volume of raw material required by its Finnish operations, even as national timber trade remains below last year's levels.<\/p>\n Wood purchasing remains uneven across Finland<\/strong><\/p>\n Stora Enso's procurement figures differ from the wider Finnish market, where timber trading volumes have fallen by approximately one-fifth year on year.<\/p>\n The company's second-quarter purchasing performance was supported by its own mill requirements, while its autumn incentives are designed to maintain deliveries through the remainder of the year.<\/p>\n The national price data also show substantial differences between harvesting methods. Regeneration fellings command the highest sawlog prices, while first thinnings generally generate considerably lower returns per cubic metre.<\/p>\n Regional conditions can differ sharply. Timber availability, harvesting costs, stand quality and the distance to consuming mills all influence the prices offered to forest owners.<\/p>\n Stora Enso expects its wood procurement requirements to remain at planned levels for the rest of the year, with the additional sawn timber and packaging board capacity continuing to support domestic purchasing.<\/p>","protected":false},"excerpt":{"rendered":" Stora Enso has increased its wood purchases in Finland this year, despite a sharp decline in timber trading across the country. The company reached its second-quarter procurement target and expects demand from its mills to remain at planned levels through … Continue reading \n
\n \nWood assortment<\/th>\n Regeneration felling<\/th>\n Thinning<\/th>\n First thinning<\/th>\n<\/tr>\n<\/thead>\n \n Pine sawlogs<\/td>\n 79.68<\/td>\n 69.95<\/td>\n 49.19<\/td>\n<\/tr>\n \n Spruce sawlogs<\/td>\n 84.61<\/td>\n 72.18<\/td>\n 46.31<\/td>\n<\/tr>\n \n Birch sawlogs<\/td>\n 62.63<\/td>\n 53.38<\/td>\n 39.49<\/td>\n<\/tr>\n \n Pine pulpwood<\/td>\n 25.15<\/td>\n 20.55<\/td>\n 15.99<\/td>\n<\/tr>\n \n Spruce pulpwood<\/td>\n 26.18<\/td>\n 21.56<\/td>\n 16.27<\/td>\n<\/tr>\n \n Birch pulpwood<\/td>\n 25.02<\/td>\n 21.23<\/td>\n 16.20<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n