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Now the price of wooden products in Sweden is rising after the sharp fall in prices last autumn.\u00a0But the price increases are not due to increased demand, but to reduced supply.<\/p>\n
After a very heavy autumn with timber prices in free fall, Swedish sawmills are now seeing cautiously rising prices.\u00a0Throughout the autumn of last year, the buyers were waiting for continued price reductions and the purchases were riveted.\u00a0In the end, the buyers' stocks got too low and everyone started buying at the same time, writes Danske Bank in a press release.<\/p>\n
''There are many indications that the wood products market has now bottomed out, but we do not believe in a classic economic turnaround with a price rally for sawn timber.\u00a0Construction is declining in large parts of the world with lower demand as a result,'' says Johan Freij, Senior Forestry Expert at Danske Bank Sweden.<\/p>\n
The reduced supply of wood products is due to a number of different factors, according to Danske Bank.\u00a0Bark beetle damage has led to a reduced supply of timber in Canada and Central Europe, but the biggest cause is likely Russia's war of invasion in Ukraine.\u00a0In 2021, Russia was the world's second largest exporter of wood products just behind Canada, but according to the sawmills, the Russian timber is now out of the European market.\u00a0About half of the previous Russian exports of about 30 million cubic meters went to China, but even there Russian wood seems to have declined.<\/p>\n
''We see signs that Russia is unable to supply the Chinese market, which is increasingly buying wood products from Europe.\u00a0It may be temporary, but still gives a signal that Russia has problems with the logistics chain from felling to sawmills and shipping,'' says Johan Freij.<\/p>\n
As in previous periods of low prices, it is Egypt and China that save the deliveries of Swedish wood products and give sawmills the confidence to raise prices when stocks decrease.\u00a0But what really stands out is the US market.\u00a0Imports from Europe and Sweden have strengthened dramatically and in 2022 the USA has been established as Sweden's most important wood product market after Great Britain.<\/p>\n
Out in the forest, we now have a completely unique situation for the forest owners, says Danske Bank.\u00a0At the end of last year, the majority of Swedish sawmills showed red numbers - but instead of price reductions, timber prices were raised across the country.\u00a0There is a fight for the logs in the forest from all sides, at the same time that the forest owners cut back on felling after a few good years.<\/p>","protected":false},"excerpt":{"rendered":"
Now the price of wooden products in Sweden is rising after the sharp fall in prices last autumn.\u00a0But the price increases are not due to increased demand, but to reduced supply. After a very heavy autumn with timber prices in … Continue reading