It is estimated that the output of Finnish softwood sawmills has declined by 6% during the first half of 2024 to 5.5 million m\u00b3 compared to the same period in 2023. Output of pine declined by 5% and spruce by 7%. However, at the end of June, the inventories of both pine and spruce were 10-15% below the levels at the same time in 2023.<\/p>\n
The domestic market continues to struggle, primarily due to the sluggish construction sector. Over the past 12 months, cumulative domestic consumption has plummeted to a record low of 1.9 million m\u00b3. In contrast, nearly 6 million m\u00b3 were consumed before the financial crisis.<\/p>\n
Export markets have been relatively quiet, though small price increases have been observed in select areas. Nevertheless, order books for the third quarter remain incomplete. Notably, Chinese imports of Finnish products fell by 27% in the first half of the year, totaling 370,000 m\u00b3 compared to the same period last year.<\/p>\n
Finnish Government submits the Annual Climate Report to Parliament<\/strong><\/p>\n One of the highlights for June is the submission of the Annual Climate Report by the Finnish Government to Parliament. This comprehensive document delves into Finland's progress towards its climate targets and is structured around the emissions from different sectors, including land use, land use change, and forestry (LULUCF).<\/p>\n The report provides an alarming insight into the decreasing size of the forest carbon sink over the past few years due to various factors. Despite forests being traditionally a sink, the sector imitated a source of emissions in 2018, 2021, and 2022. The data also suggests a deficit in meeting the EU obligations for the land use sector for 2021\u20132025.<\/p>\n In response, the government is formulating measures revolving around the rotation periods of commercial forests, the intensity of thinning operations, and peatland management to recover the sinks of forests. Nevertheless, influencing the harvesting volumes may prove challenging due to the high percentage of private ownership of forests in Finland.<\/p>\n Rise in Finnish roundwood prices <\/strong><\/p>\n Finnish roundwood prices are on an upward trajectory despite the dull market for sawn softwood. Pulp, paper, and packaging markets are showing signs of recovery, meaning companies are eager to buy more wood. However, with log prices hitting record levels, these companies are feeling challenged by the price development.<\/p>\n Log prices in Central Europe seem to be eroding due to sawmills' thick reserves of roundwood and an increasing supply of damaged wood. There have also been tough logistical conditions that have presented a challenge to the wood supply. Roundwood prices in Sweden appear to mirror the trends observed in Finland, while there are also indications of rising log prices in the Baltic region.<\/p>","protected":false},"excerpt":{"rendered":" It is estimated that the output of Finnish softwood sawmills has declined by 6% during the first half of 2024 to 5.5 million m\u00b3 compared to the same period in 2023. Output of pine declined by 5% and spruce by … Continue reading