{"id":78868,"date":"2020-03-06T08:17:08","date_gmt":"2020-03-06T08:17:08","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/swedish-forest-industry-impacted-weak-european-markets\/"},"modified":"2025-09-19T08:52:49","modified_gmt":"2025-09-19T08:52:49","slug":"swedish-forest-industry-impacted-weak-european-markets","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/swedish-forest-industry-impacted-weak-european-markets\/","title":{"rendered":"Swedish forest industry impacted by weak European markets"},"content":{"rendered":"
\n

As a whole, 2019 was a good year for the Swedish forest industry, but not as favorable as 2018. A relatively strong first half was replaced by a weaker one when the forest industry fell into the general economic slowdown.<\/p>\n

The weak development in Europe left clear tracks in the forest industry, with falling export volumes as a result. For exports of wood and pulp, this was offset by increased exports to China and Egypt in particular. In the short term, the coronavirus can now temporarily reduce exports to China<\/em>, says Kerstin Hallsten, chief economist at the Swedish Forest Industries.<\/span><\/p>\n

A global slowdown also led to falling prices for the forest industry. There was also an oversupply of raw materials due to bark beetle attacks that affected both the European continent and Sweden. However, the fall in prices was somewhat less for the Swedish forest industry compared with the European as a result of the krona's exchange rate weakening.<\/p>\n

Doubled exports to China<\/strong><\/p>\n

Of the forest industry's products, the pulp market developed most strongly. In 2019, production and exports increased by 10 and 15 per cent in volume respectively. The increase in production was made possible by previous years' investments in new capacity at several of the country's pulp producers.<\/p>\n

Export volumes to China more than doubled in 2019 and China is now our most important trading partner. However, sharply falling pulp prices during the year meant that the increase in export value stopped at six percent<\/em>, says Katrin Heinsoo, market analyst at the Swedish Forest Industries.<\/p>\n

She continues:<\/p>\n

Increased pulp exports to China are probably driven to some extent by the country's import restrictions on recycled paper. This has increased the need for fresh fiber for a growing domestic paper production<\/em>.<\/p>\n

Paper production fell by 4 percent<\/strong><\/p>\n

Swedish production and export of paper, on the other hand, decreased by four percent in 2019. Manufacturing also fell in many other paper-producing countries, but not in China. However, the value of Swedish paper exports increased in 2019.<\/p>\n

Record production of wood products<\/strong><\/p>\n

Output of wood products in Sweden increased by two percent in 2019, reaching a record level of 18.6 million cubic meters. However, production increased more slowly towards the end of the year. Export volumes remained unchanged during the year, but declined to Europe, where the Swedish industry lost market share.<\/p>\n

Exports to countries outside Europe increased during the year, to Egypt and China by as much as 45 and 19 percent, respectively. As a result, Egypt is again, by margin, the Swedish timber industry's largest export market after the UK<\/em>, says Kerstin Hallsten.<\/p>\n

More balanced markets ahead<\/strong><\/p>\n

When Kerstin Hallsten looks ahead, she sees more balanced markets with more stable price trends:<\/p>\n

According to the Swedish National Institute of Economic Research's barometer, the mood is still worse than normal in the forest industry. However, the picture is a little less bleak than before, which can partly be linked to a more positive view of future production and finished goods inventory. The sawmills and pulp industry's views on future price developments have also clearly improved. Increased focus on climate and sustainability also presents great opportunities for the Swedish forest industry.<\/em><\/p>\n<\/div>\n

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