{"id":88861,"date":"2025-05-20T05:38:59","date_gmt":"2025-05-20T05:38:59","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/finlands-high-log-prices-squeeze-sawmill-margins\/"},"modified":"2025-09-18T17:30:31","modified_gmt":"2025-09-18T17:30:31","slug":"finlands-high-log-prices-squeeze-sawmill-margins","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/finlands-high-log-prices-squeeze-sawmill-margins\/","title":{"rendered":"Finland\u2019s high log prices squeeze sawmill margins"},"content":{"rendered":"

Log prices in Finland have climbed to levels that many sawmills now consider unsustainable, raising concerns about long-term industry competitiveness. <\/span>While forest owners argue the prices reflect a well-functioning market, sawmill operators warn that profit margins have eroded to the point of stagnation.<\/p>\n

The prices of logs and softwood lumber have largely followed the same trajectory in recent years, a development some interpret as a sign of market stability. According to forest owners\u2019 representatives, the close alignment between stumpage prices for softwood logs and export prices for sawn timber suggests a healthy market dynamic.<\/p>\n

During the 2021\u20132022 period, softwood lumber prices surged in response to global supply disruptions and strong demand. This divergence from the steadier rise in log prices allowed sawmills to invest in capacity and infrastructure. As softwood lumber prices later normalized, log prices continued to rise, eventually closing the gap.<\/p>\n

Now, both indices show a synchronized development path. According to this view, the elevated log prices\u2014around \u20ac90 per cubic meter in some cases\u2014are not distortions, but a natural outcome of evolving market fundamentals. Supporters of this outlook also point to increased revenues from by-products and pulpwood as contributing to sawmill profitability.<\/p>\n

However, sawmillers tell a different story. Industry representatives argue that despite what the indices suggest, the real-world gap between log input costs and softwood lumber sales prices has widened to the point of unprofitability. Many private sawmills reportedly operate at break-even, with insufficient returns to support investment or innovation.<\/p>\n

They contend that the Foex indices, often cited by forest owners, fail to capture the current imbalance. In practice, say critics, the export price of softwood lumber would need to rise significantly\u2014by several dozen euros per cubic meter\u2014to restore healthy margins. Alternatively, log prices would need to drop below \u20ac70 to make production viable at current market rates.<\/p>\n

With no sign of easing in log prices, the sawmill sector faces difficult decisions. High raw material costs, coupled with global market pressures, may lead to production cutbacks or closures unless the pricing environment shifts.<\/p>","protected":false},"excerpt":{"rendered":"

Log prices in Finland have climbed to levels that many sawmills now consider unsustainable, raising concerns about long-term industry competitiveness. While forest owners argue the prices reflect a well-functioning market, sawmill operators warn that profit margins have eroded to the … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":49943,"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-88861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nFinland\u2019s high log prices squeeze sawmill margins - 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\/finlands-high-log-prices-squeeze-sawmill-margins\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finland\u2019s high log prices squeeze sawmill margins - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Log prices in Finland have climbed to levels that many sawmills now consider unsustainable, raising concerns about long-term industry competitiveness. 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