{"id":88937,"date":"2025-06-06T06:58:54","date_gmt":"2025-06-06T06:58:54","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/setra-saturated-global-softwood-lumber-market-cautious-europe-weak-uk-and-underperforming-china-demand\/"},"modified":"2025-09-19T09:04:24","modified_gmt":"2025-09-19T09:04:24","slug":"setra-saturated-global-softwood-lumber-market-cautious-europe-weak-uk-and-underperforming-china-demand","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/setra-saturated-global-softwood-lumber-market-cautious-europe-weak-uk-and-underperforming-china-demand\/","title":{"rendered":"Setra: Saturated global softwood lumber market; cautious Europe, weak UK and underperforming China demand"},"content":{"rendered":"

<\/span>Setra Group AB is currently in a particularly interesting phase. Earlier this year, Sveaskog sold its 50% ownership stake to Mellanskog, making Mellanskog the 99.5% owner of the company. At the same time, a new small-diameter sawlog line has been inaugurated in Skinnskatteberg, and the pine sawmill in Mal\u00e5 is up for sale. With a large share of its operations in sawn timber, Setra is one of Sweden\u2019s major exporters.<\/p>\n

In an interview in the Swedish media, Johanna Lind\u00e9n, CFO of Setra Group AB<\/strong>, shares how a player like Setra is affected by \u2014 and operates on \u2014 the export market when currency fluctuations strike and volumes must be placed as efficiently as possible in a relatively saturated market.<\/p>\n

Trade wars, a strengthened krona against the USD and EUR, and market uncertainty \u2014 what are your reflections?<\/strong><\/p>\n

''Right now, we feel that much is hanging in the balance. Part of the answer to how markets and trade flows may evolve depends on the outcome of the U.S. tariff investigation expected this summer. Nothing will change drastically until the market has a clearer picture of the impact of those tariffs.<\/p>\n

In general, the global market for softwood lumber is saturated. The UK remains weak from a historical perspective, Sweden and the rest of Europe are cautious and have not restarted construction, China is not absorbing volumes, and the U.S. has not become the safety net many had hoped for.
There are no deals that can simply be taken \u2014 instead, it\u2019s truly a market puzzle, with small adjustments required to place products in the best possible way.<\/p>\n

In the longer term, a producing company needs to optimize its product specifications and customer base to withstand this kind of volatility. At the same time, the balance between raw material prices and finished product prices must be restored, because the current situation is not sustainable.''<\/p>\n

Setra is a major exporter to the U.S. What are the prospects going forward?<\/strong><\/p>\n

''Exports to the U.S. have gradually increased, driven of course by favorable currency rates but also by our recent investment in the planing and grading mill in Hasselfors, where we naturally turned our attention toward the construction market in the West.<\/p>\n

The U.S. market has always been more volatile than the European one, and at times has also offered lower prices, even with currency effects factored in.
The American market is significant, and even though more domestic harvesting is now being brought to market, these volumes can\u2019t fully replace imports \u2014 so the market will remain.<\/p>\n

Of course, being present in a market means being there in both good and bad times if you\u2019re aiming for long-term success. But the question is what happens when profitability becomes too low. That\u2019s when volumes will shift away and begin competing in other markets.''<\/p>\n

What tools are available to manage the effects of currency fluctuations?<\/strong><\/p>\n

''First of all, it\u2019s easy to forget that in an export-dependent country, the playing field will always look like this. Lately, the market has become used to a favorable currency boost and hoped it would last \u2014 but from a historical perspective, the dollar is still strong.<\/p>\n

Right now, many companies are securing their exchange rates for Q1 2026 and asking themselves how they believe the market and currency rates will develop. It\u2019s a difficult situation, and the decisions companies make now could have major consequences for profitability.
We are, after all, experts in wood \u2014 not in financial markets.<\/p>\n

Beyond that, of course, it\u2019s about optimizing production. Large investments have been made throughout the industry to increase the level of processing, and now those investments need to start showing results.''<\/p>\n

Setra Group AB<\/strong><\/p>\n