{"id":80879,"date":"2021-06-18T06:08:09","date_gmt":"2021-06-18T06:08:09","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/higher-timber-prices-sweden-expected-2021\/"},"modified":"2025-09-19T08:55:41","modified_gmt":"2025-09-19T08:55:41","slug":"higher-timber-prices-sweden-expected-2021","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/higher-timber-prices-sweden-expected-2021\/","title":{"rendered":"Higher timber prices in Sweden expected in 2021"},"content":{"rendered":"
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Expect higher timber prices in Sweden in 2021<\/em><\/span><\/p>\n

This is how you can summarize Danske Bank's first newsletter for the year,\u00a0Forest & Economy No. 1, 2021\u00a0.\u00a0The theme is the increasingly\u00a0hot wood products market\u00a0and the bank writes that sawn wood products are inside a \"green supercycle\".\u00a0Large stimulus packages after covid fertilize a growing market for green investments where wood is one of the winners.<\/p>\n

Several factors drive the price of timber<\/strong><\/p>\n

The trend is boosted by the fact that wood (for climate reasons) is gaining market share in major construction projects and that the American market for wood products has more or less \"gone bananas\" with record prices.\u00a0Wood product prices for both spruce and pine have increased since the summer of last year and also now at the beginning of 2021. The upward price trend is forecast to continue.\u00a0Over time, export prices of wood products have risen steadily and the \"price bottom\" (the lowest price in a recession) is getting higher and higher, according to the bank:<\/p>\n

In this situation, Danske Bank's advice to forest owners is simple:\u00a0Go out and finish felling!\u00a0In any case, it is the advice given to forest owners in southern Sweden where the bank believes that the timber price will soon level out.\u00a0In central and northern Sweden, on the other hand, according to Danske Bank, larger price increases can be expected for timber from both spruce and pine.<\/p>\n

''We believe that timber prices may rise slightly more but see absolutely no reason to wait, in terms of final felling,'' said\u00a0Johan Freij from Danske Bank.<\/p>\n

When it comes to pulp mills, the market for market pulp (NBSK) has now recovered after more than a year of sharp decline.\u00a0Prices have been adjusted upwards from a minimum of US $ 840 per tonne in Europe to a new price of US $ 1030 per tonne which is now being sought.\u00a0However, the bank does not believe in any increase in the pulpwood price on this side this summer due to continued large stocks.<\/p>\n

Very good timber prices?<\/strong><\/p>\n

Johan Freij at Danske Bank writes on the one hand that the demand for timber is \"insatiable\" and that more price increases can be expected, but still lowers expectations somewhat.<\/p>\n

'Timber prices have risen sharply in southern Sweden, while price increases have been cautious in the rest of the country.\u00a0Our belief is that timber prices will continue to rise throughout the country, but that the largest increase phase is complete in southern Sweden and that the increases will still be relatively cautious in the rest of the country.\u00a0There are no signs of general shortages of timber in the system and the sawmills seem united but humble in the face of the supply situation.<\/p>\n

\"\"<\/a><\/p>\n

The question is whether timber prices are really that high in a historical perspective?\u00a0Prices have certainly risen somewhat since the bottom in mid-2020. At least in southern Sweden, where S\u00f6dra, according to Danske Bank, raised the price for spruce timber by SEK 90 \/ m\u00a03\u00a0fub.\u00a0This means that the price of spruce timber in the south is now approaching the timber prices when they were at their highest around 2010-2011 and 2015 if you look back to the mid-90s.\u00a0The pine timber is a bit behind, but here there are clear signals of strong and increasing demand, which should result in price increases.\u00a0(During the 70s and 80s, however, timber prices were higher in some years if you compare in real terms.)<\/p>\n

Higher timber price for a m\u00a03\u00a0fub in the south than for a m\u00a03\u00a0to in central Sweden<\/strong><\/p>\n

There are large price differences between southern and central Sweden today.\u00a0In any case, if you start from list prices for delivery timber.\u00a0In southern Sweden, you get more SEK for a m\u00a03\u00a0fub (cubic meters fixed under bark) than you get for a m\u00a03\u00a0to (cubic meters top cylinder dimensions under bark) in Central Sweden.\u00a0In any case, when it comes to spruce timber price differences are up to 20 percent in favor of southern Sweden.<\/p>\n

Summary of outlook in the Swedish timber market:<\/p>\n