Following a recent visit by GWMI to S\u00f6dra's integrated industrial site in V\u00e4r\u00f6, Sweden, we spoke with Jonas Karlsson, Sales & Market Director at S\u00f6dra Wood, about the company's sawmill operations and the conditions facing European timber producers. Karlsson is responsible for S\u00f6dra Wood's global sales activities and works with customers across Europe and overseas markets.<\/p>\n
The discussion covers the role of V\u00e4r\u00f6 within S\u00f6dra's industrial operations, investments in scanning and sorting technology, and the relationship between sawmilling, pulp production and CLT manufacturing at the site. Karlsson also examines developments in the UK, continental Europe, the US and Asia, the pressure of historically high sawlog costs in southern Sweden, and the prospects for timber markets heading into 2027.<\/p>\n
V\u00e4r\u00f6 sawmill<\/strong><\/p>\n GWMI:<\/strong> What makes V\u00e4r\u00f6 stand out among S\u00f6dra's sawmills, and what role does it play in supplying your customers?<\/em><\/p>\n Jonas Karlsson:<\/strong> V\u00e4r\u00f6 is one of S\u00f6dra Wood's most important production sites and a key supplier to customers across Europe and overseas markets. What makes V\u00e4r\u00f6 unique is its scale, high level of automation and its location within an integrated industrial site that includes sawmilling, pulp production, CLT manufacturing and bioproducts.<\/p>\n The sawmill plays an important role in providing customers with a reliable supply of high-quality timber products. Its modern production processes, combined with efficient logistics and close access to export infrastructure, enable us to meet customer demands for quality, consistency and delivery performance.<\/p>\n <\/p>\n GWMI:<\/strong> Who are the main customers for timber produced at V\u00e4r\u00f6? Have you seen any changes in what they need or ask for?<\/em><\/p>\n Jonas Karlsson:<\/strong> The main customers are timber merchants, construction material distributors, industrial manufacturers and wood processing companies across Europe, particularly in the UK, Scandinavia and selected continental European markets.<\/p>\n Over recent years we have seen increasing demand for consistent quality, precise grading and reliable deliveries. At the same time, transparency regarding raw material sourcing and product performance has become increasingly important. While sustainability remains a key factor, purchasing decisions continue to be driven by quality, availability and overall value.<\/p>\n <\/p>\n GWMI:<\/strong> You've introduced new scanning and sorting technology at V\u00e4r\u00f6. What difference does it make in the mill's day-to-day work and in the quality of the finished timber?<\/em><\/p>\n Jonas Karlsson:<\/strong> The investment in new scanning and sorting technology allows us to make better use of every log entering the sawmill. More advanced scanning improves our ability to identify the properties of the timber and optimise how each log is processed.<\/p>\n In practical terms, this increases efficiency, improves yield and enables more accurate grading of finished products. For customers, the result is more consistent timber quality and more reliable product specifications. It also strengthens our ability to meet increasingly specialised customer requirements across different markets.<\/p>\n <\/p>\n GWMI:<\/strong> V\u00e4r\u00f6's sawmill, pulp mill and CLT factory operate on the same site. How does that work in practice, and where do you see the biggest benefits?<\/em><\/p>\n Jonas Karlsson:<\/strong> Having these operations on the same site creates a highly integrated value chain. Material flows can be optimised, side streams can be utilised efficiently and logistics become significantly more effective.<\/p>\n The biggest benefit is that we can maximise the value of every part of the forest resource. Timber suitable for sawn products becomes construction materials, while chips, bark and other by-products are utilised in pulp production, renewable energy and bioproducts. This integrated approach improves resource efficiency, reduces waste and transportation needs, and strengthens both competitiveness and innovation across the site.<\/p>\n <\/p>\n GWMI:<\/strong> What are the biggest challenges for V\u00e4r\u00f6 at the moment, and how are you dealing with them?<\/em><\/p>\n Jonas Karlsson:<\/strong> Like many European sawmills, we are operating in a market characterised by high raw material costs and continued uncertainty in several construction markets.<\/p>\n Our focus is therefore on improving productivity, strengthening quality, optimising product mix and increasing the value generated from every log. Investments in technology, operational efficiency and customer-focused product development are important tools for maintaining competitiveness despite challenging market conditions.<\/p>\n <\/p>\n Markets, exports and outlook<\/strong><\/p>\n GWMI:<\/strong> What are you seeing in the sawn timber market right now? Are orders picking up anywhere, or are customers still cautious?<\/em><\/p>\n Jonas Karlsson:<\/strong> The market remains challenging, with cautious customers and weak construction activity across several regions. While selected segments have shown temporary signs of stabilisation, the broader recovery remains fragile. Customers continue to buy selectively, inventories are only partly balanced, and we expect market conditions to remain under pressure in the near term.<\/p>\n <\/p>\n GWMI:<\/strong> Which export markets are most important for S\u00f6dra Wood today? Are there any where demand has surprised you this year, either positively or negatively?<\/em><\/p>\n Jonas Karlsson:<\/strong> The UK remains one of our most important export markets, alongside several countries in continental Europe. We also serve customers in North America, Asia and selected markets in the Middle East and North Africa.<\/p>\n Market developments have varied considerably during the year. Some European markets have recovered more slowly than expected due to continued weakness in construction activity. At the same time, we have seen encouraging demand in certain export segments where customers are seeking reliable suppliers and high-quality products.<\/p>\n <\/p>\n GWMI:<\/strong> How does the picture differ between the UK, continental Europe, the US and Asia What are you hearing from customers in those markets?<\/em><\/p>\n Jonas Karlsson:<\/strong> The UK remains an important market, but conditions have weakened again after some stabilisation in early summer. Residential construction remains subdued, and most observers expect the next two quarters to stay challenging. Weak demand, cautious buying and an oversupply of goods, partly linked to storm-related volumes from central Sweden, continue to put pressure on the market.<\/p>\n In continental Europe, conditions differ significantly between countries. Some markets are showing signs of improvement, while others remain affected by weak construction demand.<\/p>\n In the US, customers are closely watching interest rates and housing starts, as these factors continue to influence demand for wood products.<\/p>\n In Asia, market conditions vary between countries, but customers generally remain price-sensitive and focused on supply reliability. Across all regions, demand for high quality and consistent performance remains a common theme.<\/p>\n <\/p>\n Prices, costs and outlook<\/strong><\/p>\n GWMI:<\/strong> How have sawn timber prices developed this year? Is there room for producers to recover more of their costs through higher selling prices?<\/em><\/p>\n Jonas Karlsson:<\/strong> Prices have generally improved compared with the weakest periods of the market cycle, but profitability remains under pressure due to significantly higher raw material costs.<\/p>\n Whether further price increases can be achieved depends largely on market demand. For sustainable profitability, selling prices need to better reflect the cost increases that producers have experienced, particularly in raw materials. A healthier balance between supply and demand would support this development.<\/p>\n <\/p>\n GWMI:<\/strong> Sawlog costs have been a major concern for Swedish sawmills. How do you see the situation today, both in terms of prices and the availability of logs?<\/em><\/p>\n Jonas Karlsson:<\/strong> Although sawlog costs have eased from the extreme levels seen earlier, prices in southern Sweden remain historically high and continue to put pressure on mill margins. At present, log availability appears somewhat more balanced, but the underlying supply situation remains fragile. The decline in harvesting notifications indicates weakening harvesting willingness among forest owners, and we therefore see a clear risk that raw material availability could again become a limiting factor already in the short term.<\/p>\n For the industry as a whole, the current situation highlights the need for a more sustainable balance between available sawlog volumes, production capacity and market demand.<\/p>\n As a forest-owner cooperative, S\u00f6dra benefits from close relationships with its members and a high degree of delivery loyalty, which gives us a relatively stable raw material foundation despite uncertainty in the broader market.<\/p>\n <\/p>\n <\/p>\n GWMI:<\/strong> Beyond the cost of logs, what is making export business more difficult at the moment? How much are exchange rates, freight costs and trade barriers affecting the market?<\/em><\/p>\n Jonas Karlsson:<\/strong> Export markets are currently affected by a combination of factors. Exchange rate fluctuations can have a significant impact on competitiveness from one market to another. Also, freight costs remain an important cost factor.<\/p>\n In addition, increasing regulatory requirements and trade-related uncertainties create complexity for international business. Successfully navigating these conditions requires flexibility, strong customer relationships and efficient supply chains.<\/p>\n <\/p>\n GWMI:<\/strong> As we approach the end of 2026, what do you expect for the coming months and for 2027? What would you need to see to feel more confident about a recovery?<\/em><\/p>\n Jonas Karlsson:<\/strong> We expect market conditions to remain challenging in the short term, but there are signs that the market is moving in a more positive direction than during the previous downturn.<\/p>\n For 2027, confidence would increase if we saw stronger construction activity, lower interest rates, improved consumer confidence and more stable economic conditions generally. Wood remains a highly attractive building material, and once construction markets regain momentum, demand for timber products is likely to benefit accordingly.<\/p>","protected":false},"excerpt":{"rendered":" Following a recent visit by GWMI to S\u00f6dra’s integrated industrial site in V\u00e4r\u00f6, Sweden, we spoke with Jonas Karlsson, Sales & Market Director at S\u00f6dra Wood, about the company’s sawmill operations and the conditions facing European timber producers. Karlsson is … Continue reading
![<\/a>GWMI recently visited S\u00f6dra\u2019s V\u00e4r\u00f6 industrial site in Sweden, where sawmilling, pulp production and CLT manufacturing form part of an integrated operation. Photo: S\u00f6dra<\/figcaption><\/figure>\n <\/p>\nMarkets, exports and outlook<\/strong><\/p>\nGWMI:<\/strong> What are you seeing in the sawn timber market right now? Are orders picking up anywhere, or are customers still cautious?<\/em><\/p>\nJonas Karlsson:<\/strong> The market remains challenging, with cautious customers and weak construction activity across several regions. While selected segments have shown temporary signs of stabilisation, the broader recovery remains fragile. Customers continue to buy selectively, inventories are only partly balanced, and we expect market conditions to remain under pressure in the near term.<\/p>\n <\/p>\nGWMI:<\/strong> Which export markets are most important for S\u00f6dra Wood today? Are there any where demand has surprised you this year, either positively or negatively?<\/em><\/p>\nJonas Karlsson:<\/strong> The UK remains one of our most important export markets, alongside several countries in continental Europe. We also serve customers in North America, Asia and selected markets in the Middle East and North Africa.<\/p>\nMarket developments have varied considerably during the year. Some European markets have recovered more slowly than expected due to continued weakness in construction activity. At the same time, we have seen encouraging demand in certain export segments where customers are seeking reliable suppliers and high-quality products.<\/p>\n <\/p>\nGWMI:<\/strong> How does the picture differ between the UK, continental Europe, the US and Asia What are you hearing from customers in those markets?<\/em><\/p>\nJonas Karlsson:<\/strong> The UK remains an important market, but conditions have weakened again after some stabilisation in early summer. Residential construction remains subdued, and most observers expect the next two quarters to stay challenging. Weak demand, cautious buying and an oversupply of goods, partly linked to storm-related volumes from central Sweden, continue to put pressure on the market.<\/p>\nIn continental Europe, conditions differ significantly between countries. Some markets are showing signs of improvement, while others remain affected by weak construction demand.<\/p>\nIn the US, customers are closely watching interest rates and housing starts, as these factors continue to influence demand for wood products.<\/p>\nIn Asia, market conditions vary between countries, but customers generally remain price-sensitive and focused on supply reliability. Across all regions, demand for high quality and consistent performance remains a common theme.<\/p>\n <\/p>\nPrices, costs and outlook<\/strong><\/p>\nGWMI:<\/strong> How have sawn timber prices developed this year? Is there room for producers to recover more of their costs through higher selling prices?<\/em><\/p>\nJonas Karlsson:<\/strong> Prices have generally improved compared with the weakest periods of the market cycle, but profitability remains under pressure due to significantly higher raw material costs.<\/p>\nWhether further price increases can be achieved depends largely on market demand. For sustainable profitability, selling prices need to better reflect the cost increases that producers have experienced, particularly in raw materials. A healthier balance between supply and demand would support this development.<\/p>\n <\/p>\nGWMI:<\/strong> Sawlog costs have been a major concern for Swedish sawmills. How do you see the situation today, both in terms of prices and the availability of logs?<\/em><\/p>\nJonas Karlsson:<\/strong> Although sawlog costs have eased from the extreme levels seen earlier, prices in southern Sweden remain historically high and continue to put pressure on mill margins. At present, log availability appears somewhat more balanced, but the underlying supply situation remains fragile. The decline in harvesting notifications indicates weakening harvesting willingness among forest owners, and we therefore see a clear risk that raw material availability could again become a limiting factor already in the short term.<\/p>\nFor the industry as a whole, the current situation highlights the need for a more sustainable balance between available sawlog volumes, production capacity and market demand.<\/p>\nAs a forest-owner cooperative, S\u00f6dra benefits from close relationships with its members and a high degree of delivery loyalty, which gives us a relatively stable raw material foundation despite uncertainty in the broader market.<\/p>\n <\/p>\n<\/a>The outlook for European sawn timber markets remains uncertain, with weak construction demand and high raw material costs continuing to weigh on sawmill profitability, according to S\u00f6dra Wood\u2019s Sales & Market Director Jonas Karlsson. Photo: S\u00f6dra<\/figcaption><\/figure>\n <\/p>\nGWMI:<\/strong> Beyond the cost of logs, what is making export business more difficult at the moment? How much are exchange rates, freight costs and trade barriers affecting the market?<\/em><\/p>\nJonas Karlsson:<\/strong> Export markets are currently affected by a combination of factors. Exchange rate fluctuations can have a significant impact on competitiveness from one market to another. Also, freight costs remain an important cost factor.<\/p>\nIn addition, increasing regulatory requirements and trade-related uncertainties create complexity for international business. Successfully navigating these conditions requires flexibility, strong customer relationships and efficient supply chains.<\/p>\n <\/p>\nGWMI:<\/strong> As we approach the end of 2026, what do you expect for the coming months and for 2027? What would you need to see to feel more confident about a recovery?<\/em><\/p>\nJonas Karlsson:<\/strong> We expect market conditions to remain challenging in the short term, but there are signs that the market is moving in a more positive direction than during the previous downturn.<\/p>\nFor 2027, confidence would increase if we saw stronger construction activity, lower interest rates, improved consumer confidence and more stable economic conditions generally. Wood remains a highly attractive building material, and once construction markets regain momentum, demand for timber products is likely to benefit accordingly.<\/p>","protected":false},"excerpt":{"rendered":"Following a recent visit by GWMI to S\u00f6dra’s integrated industrial site in V\u00e4r\u00f6, Sweden, we spoke with Jonas Karlsson, Sales & Market Director at S\u00f6dra Wood, about the company’s sawmill operations and the conditions facing European timber producers. Karlsson is … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":100323,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-100322","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nGWMI Interviews: Jonas Karlsson, Sales & Market Director at S\u00f6dra, on sawlog prices, export markets and the 2027 outlook - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/gwmi-interviews-jonas-karlsson-sales-market-director-at-sodra-on-sawlog-prices-export-markets-and-the-2027-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GWMI Interviews: Jonas Karlsson, Sales & Market Director at S\u00f6dra, on sawlog prices, export markets and the 2027 outlook - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Following a recent visit by GWMI to S\u00f6dra's integrated industrial site in V\u00e4r\u00f6, Sweden, we spoke with Jonas Karlsson, Sales & Market Director at S\u00f6dra Wood, about the company's sawmill operations and the conditions facing European timber producers. 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![<\/a>The outlook for European sawn timber markets remains uncertain, with weak construction demand and high raw material costs continuing to weigh on sawmill profitability, according to S\u00f6dra Wood\u2019s Sales & Market Director Jonas Karlsson. Photo: S\u00f6dra<\/figcaption><\/figure>\n <\/p>\nGWMI:<\/strong> Beyond the cost of logs, what is making export business more difficult at the moment? How much are exchange rates, freight costs and trade barriers affecting the market?<\/em><\/p>\nJonas Karlsson:<\/strong> Export markets are currently affected by a combination of factors. Exchange rate fluctuations can have a significant impact on competitiveness from one market to another. Also, freight costs remain an important cost factor.<\/p>\nIn addition, increasing regulatory requirements and trade-related uncertainties create complexity for international business. Successfully navigating these conditions requires flexibility, strong customer relationships and efficient supply chains.<\/p>\n <\/p>\nGWMI:<\/strong> As we approach the end of 2026, what do you expect for the coming months and for 2027? What would you need to see to feel more confident about a recovery?<\/em><\/p>\nJonas Karlsson:<\/strong> We expect market conditions to remain challenging in the short term, but there are signs that the market is moving in a more positive direction than during the previous downturn.<\/p>\nFor 2027, confidence would increase if we saw stronger construction activity, lower interest rates, improved consumer confidence and more stable economic conditions generally. Wood remains a highly attractive building material, and once construction markets regain momentum, demand for timber products is likely to benefit accordingly.<\/p>","protected":false},"excerpt":{"rendered":"Following a recent visit by GWMI to S\u00f6dra’s integrated industrial site in V\u00e4r\u00f6, Sweden, we spoke with Jonas Karlsson, Sales & Market Director at S\u00f6dra Wood, about the company’s sawmill operations and the conditions facing European timber producers. 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