{"id":88582,"date":"2025-02-25T07:44:22","date_gmt":"2025-02-25T07:44:22","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/market-turnaround-remains-distant-finlands-sawmills-operating-at-80-capacity\/"},"modified":"2025-09-18T17:29:55","modified_gmt":"2025-09-18T17:29:55","slug":"market-turnaround-remains-distant-finlands-sawmills-operating-at-80-capacity","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/market-turnaround-remains-distant-finlands-sawmills-operating-at-80-capacity\/","title":{"rendered":"Market turnaround remains distant \u2013 Finland\u2019s sawmills operating at 80% capacity"},"content":{"rendered":"

<\/span>The annual Wood from Finland conference, organized by the Finnish Sawmill Industry Association (Sahateollisuus) in Helsinki, is a high-quality event, though not widely recognized. This year's edition, held just over a week ago, brought together around 600 participants from across the globe.<\/p>\n

Despite the well-organized event, the overall sentiment remained subdued. The sawmill industry is not thriving anywhere in the world, but it is not in deep crisis either.<\/p>\n

\"A dull situation. The industry has adapted to a world where consumption has dropped by 50 million cubic meters,\" says Matti Kyl\u00e4vainio, chairman of the Finnish Sawmill Industry Association (Sahateollisuus) and CEO of Keitele Timber Oy.<\/p>\n

This decline means that global softwood consumption has fallen from a peak of 338 million cubic meters in 2021 to an estimated 290 million cubic meters last year, with the sharpest drops in Europe and China.<\/p>\n

The last comparable decline occurred during the 2007\u20132009 financial crisis, and domestic sawmilling volumes in Finland have fluctuated between 10 and 12 million cubic meters in recent years.<\/p>\n

Domestic production grows while capacity utilization declines<\/strong><\/p>\n

The adaptation process has led to a reduction in supply, influenced by several factors. Russian wood no longer enters Europe, and European sawmills have scaled back production.<\/p>\n

In Finland, sawmilling output increased by about 5% last year, yet capacity utilization may have declined slightly due to completed investments.<\/p>\n

\"We\u2019re running at 80% capacity.\"<\/p>\n

Mets\u00e4 Fibre recently announced restructuring negotiations at three of its sawmills. Any decisions on downtime and layoffs will require more than minor justifications.<\/p>\n

No quick market recovery in sight<\/strong><\/p>\n

The outlook remains uncertain, and Kyl\u00e4vainio does not expect significant improvement within the next six months. However, with ten consecutive weak quarters behind, a market turnaround is gradually approaching.<\/p>\n

\"I don\u2019t foresee a rapid recovery. The traditional strong customer markets in wealthier northern Europe are struggling economically.\"<\/p>\n

The situation in distant markets is no more encouraging. China\u2019s construction sector has hit rock bottom.<\/p>\n

\"China\u2019s real estate boom overheated, and now the bubble has burst. Property values need to stabilize before real estate becomes an attractive investment again.\"<\/p>\n

Regarding Egypt and Saudi Arabia, Kyl\u00e4vainio acknowledges ambitious development plans but remains cautious.<\/p>\n

\"Our market depends on ordinary Egyptian and Saudi homebuilders. Luxury projects consume little sawn wood\u2014skyscraper formwork is made from plywood, and window frames are aluminum.\"<\/p>\n

He believes that unplaned pine lumber will remain in demand in these regions for the foreseeable future, while high import tariffs limit opportunities for more refined wood products.<\/p>\n

Log price forecasts mirror last year\u2019s trends<\/strong><\/p>\n

Recent years have shown that the best log prices tend to appear just before midsummer. Last year, prices remained consistently high without a significant early summer spike. When asked for a forecast, Kyl\u00e4vainio suggests a repeat of last year\u2019s trend.<\/p>\n

\"We have learned to operate in a weaker market. No cheaper alternatives have flooded in, so market shares have been preserved.\"<\/p>\n

Finnish sawmill executives continue to highlight the price imbalance between log costs and sawn wood prices, especially when the market conditions favor log suppliers over sawmills. Kyl\u00e4vainio is no exception.<\/p>\n

\"Now, sawmills must operate efficiently to maintain profitability.\"<\/p>","protected":false},"excerpt":{"rendered":"

The annual Wood from Finland conference, organized by the Finnish Sawmill Industry Association (Sahateollisuus) in Helsinki, is a high-quality event, though not widely recognized. This year’s edition, held just over a week ago, brought together around 600 participants from across … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96513,"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-88582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","topic-forestry","topic-lumber","topic-price-analysis-and-info","topic-pulp-paper","topic-sawmilling","topic-statistics","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\nMarket turnaround remains distant \u2013 Finland\u2019s sawmills operating at 80% capacity - 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\/market-turnaround-remains-distant-finlands-sawmills-operating-at-80-capacity\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market turnaround remains distant \u2013 Finland\u2019s sawmills operating at 80% capacity - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The annual Wood from Finland conference, organized by the Finnish Sawmill Industry Association (Sahateollisuus) in Helsinki, is a high-quality event, though not widely recognized. 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