{"id":88062,"date":"2024-09-12T10:02:16","date_gmt":"2024-09-12T10:02:16","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/tough-fall-expected-for-swedish-sawmills\/"},"modified":"2025-09-19T09:02:45","modified_gmt":"2025-09-19T09:02:45","slug":"tough-fall-expected-for-swedish-sawmills","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/tough-fall-expected-for-swedish-sawmills\/","title":{"rendered":"Tough fall expected for Swedish sawmills"},"content":{"rendered":"

The optimism that Swedish sawmill managers displayed in the spring has now turned into concern. The momentum from the spring, with price increases averaging around 10%, stalled over the summer. Demand was not strong enough, and now, at best, prices are being maintained while timber costs continue to soar.<\/span><\/p>\n

Decent results for the second quarter<\/strong><\/p>\n

The second quarter was relatively good for Swedish sawmills despite the already very high raw material prices at that time. Thanks to successful timber price hikes, better timber availability, and a weak krona, the operating margin for the six sawmills followed rose to an average of 6.7%. This compares to 0.9% in Q1 and 4.8% in Q2 of the previous year. Significant differences between companies indicate that timber prices and efficiency are crucial factors.<\/p>\n

Concerns about timber supply and price increases<\/strong><\/p>\n

The outlook is not as bright moving forward. While the steep rise in timber prices continues, everyone I\u2019ve spoken to believes that, at best, timber prices will remain unchanged during the fall. Last fall, somewhat better export markets could compensate for the weak Swedish market, but now these markets are also weak. In North America, where sawmills are currently experiencing extreme losses, production limitations are starting to be implemented to stem the bleeding. For example, Canfor in North America reported an operating loss of over 2 billion SEK (approximately 180 million EUR) in the first half of this year. This contrasts with Canfor Europe, i.e., Vida, which made a profit of nearly 300 million SEK (approximately 27 million EUR) during the same period. Vida Sweden is the company's brightest star. Currently, no one sees an imminent improvement in American timber prices, which are usually a lifeline for Swedish sawmills in tougher times.<\/p>\n

Operating Margins (EBIT) Q2-24 for Nordic and North American sawmill companies<\/strong><\/p>\n

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

Statistics point to a tough fall<\/strong><\/p>\n

Sawmill managers paint a picture of a weak and uncertain fall for timber, as reflected in the statistics. The July data from the National Institute of Economic Research indicate declining order stocks and rising finished goods inventories for sawmills. As for price expectations, they have shifted from optimism at the beginning of the year to unchanged prices.<\/p>\n

Although the situation is not a general disaster, it is expected to be a really tough fall for sawmills. Price increases have so far had no effect on timber supply. A somewhat more balanced market is expected where companies with the worst profitability will have to limit production, while others will need to reduce production due to timber shortages. Even if interest rates are lowered rapidly during the second half of the year, it will likely take until next year before demand improves. The question is: When the economy turns and demand increases again, where will the timber come from?<\/p>","protected":false},"excerpt":{"rendered":"

The optimism that Swedish sawmill managers displayed in the spring has now turned into concern. The momentum from the spring, with price increases averaging around 10%, stalled over the summer. Demand was not strong enough, and now, at best, prices … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":50454,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nTough fall expected for Swedish sawmills - 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\/tough-fall-expected-for-swedish-sawmills\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tough fall expected for Swedish sawmills - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The optimism that Swedish sawmill managers displayed in the spring has now turned into concern. 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