{"id":88957,"date":"2025-06-12T04:20:28","date_gmt":"2025-06-12T04:20:28","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/norwegian-timber-prices-hit-historic-highs\/"},"modified":"2025-09-19T09:04:26","modified_gmt":"2025-09-19T09:04:26","slug":"norwegian-timber-prices-hit-historic-highs","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/norwegian-timber-prices-hit-historic-highs\/","title":{"rendered":"Norwegian timber prices hit historic highs"},"content":{"rendered":"

Norway\u2019s timber market is booming in the first half of 2025, with timber prices reaching their highest levels in decades, driving record harvesting volumes and reshaping export flows. Despite a generally weak construction sector, domestic sawmills are ramping up production to meet strong demand for spruce logs, while export markets remain volatile.<\/span><\/p>\n

Record harvesting driven by high prices<\/strong><\/p>\n

According to AT Skog SA\u2019s latest market report, a very strong timber market and historically high prices triggered a record-breaking winter harvest. The organization reports a 17% year-on-year increase in volumes traded through its system in the first tertial (January\u2013April), amounting to an extra 90,000 m\u00b3. This growth was fueled both by AT Skog\u2019s own operations running at full capacity and by active private forest owners carrying out their own harvesting.<\/p>\n

Though volumes remain high, the industry is managing to stay current with deliveries. Sawmills, export terminals, and transport companies have largely absorbed the increased output, and the amount of timber stored by roadsides is considered normal for the season. Priority is being given to transporting sawlogs and special timber types, which are more sensitive to quality degradation over time.<\/p>\n

Spruce sawlog prices exceed 1,000 NOK\/m\u00b3<\/strong><\/p>\n

From 1 May 2025, sawlog prices increased again, pushing the price of spruce logs above the much-cited threshold of 1,000 NOK\/m\u00b3 (approx. 87 EUR\/m\u00b3). While demand for sawlogs remains strong, spruce is clearly more in demand than pine, particularly during the summer season.<\/p>\n

Norwegian sawmills have significantly stepped up log procurement and production over recent months. However, many mills still report lower-than-average stock levels, partly due to increased capacity following investments made during and after the COVID-19 pandemic. Despite the subdued construction market, most producers are avoiding unnecessary stockpiling of lumber.<\/p>\n

Export dynamics shifting toward Sweden<\/strong><\/p>\n

Norway\u2019s sawlog exports are rising, but the domestic market has seen an even sharper increase. Norwegian mills are now consuming more logs than before, outpacing export growth. Key export markets such as Germany, Estonia, and Latvia no longer offer the same price premiums for Norwegian logs. Instead, exports are increasingly shifting toward Sweden, which remains competitive in the lumber export market despite uncertainties around high raw material costs.<\/p>\n

Swedish sawmills are estimated to be short by as much as 5 to 6 million m\u00b3 of lumber due to supply constraints and mill closures. Some of this shortfall is being covered by imports from Norway, which is now benefiting from this regional imbalance.<\/p>\n

Weakening pulpwood and bioenergy markets<\/strong><\/p>\n

While the market for sawlogs remains robust, demand for pulpwood is weakening. The market is oversupplied with both timber and wood chips, and inventories of finished pulp are rising. Several major pulp producers have had maintenance shutdowns or cut production during the winter to respond to sluggish downstream demand. In Norway, the pulp and paper industry predominantly uses spruce, and demand in this segment remains stable. However, pine pulpwood prices are under downward pressure, with falling spot prices and concerns about potential further declines if supply volumes are not adjusted.<\/p>\n

The bioenergy sector is also facing headwinds. A mild winter and relatively low energy prices reduced demand for fuel chips from district heating plants. Large stocks of biomass are reported around the Baltic Sea region, and spot prices are declining. Further price drops could occur leading into the next winter season.<\/p>\n

Industry voices caution and preparation<\/strong><\/p>\n

Glommen Mj\u00f8sen Skog also announced significant sawlog price increases in May, citing continued high demand. Sales manager H\u00e5kon Bakken notes that although the situation is favourable for forest owners now, it is unlikely to last.<\/p>\n

\u201cThis is a complex market,\u201d says Bakken. \u201cForest owners with harvest-ready stands should act soon. We\u2019ve seen sharp price increases for both spruce and pine. But we don\u2019t know when the market will turn.\u201d<\/p>\n

Bakken explains that timber prices have risen globally due to severe forest damage in Central Europe\u2014particularly from bark beetle outbreaks\u2014and the absence of Russian timber from the European market due to the war in Ukraine. However, local end demand remains weak, with housing construction still at a low point.<\/p>\n

\u201cSawmills are under pressure to remain profitable. With high production costs and raw material prices, and relatively low finished product prices, we\u2019re seeing capacity reductions, particularly in Sweden,\u201d Bakken adds. Swedish mills have already announced closures, such as at Moelven\u2019s Ransby and potentially L\u00f8ten sawmills.<\/p>\n

\u201cThe forest-based value chain is critical to rural Norway. If the international situation forces more cutbacks here, it could have long-term consequences,\u201d Bakken warns.<\/p>\n

Forest owners urged to plan ahead<\/strong><\/p>\n

AT Skog urges forest owners to take advantage of the favourable price environment, especially those with stands rich in sawlogs. They recommend against further adding to pulpwood supplies in an already saturated market but continue to advocate for thinning operations.<\/p>\n

The organization also stresses the importance of planning. Poorly prepared harvesting operations\u2014without clear access routes, loading sites, or coordination with neighbouring landowners\u2014can reduce profitability. Proactive planning can unlock better pricing for specialty species or quality classes.<\/p>\n

For species like noble fir, Sitka spruce, broadleaf trees, and larch, forest owners may achieve higher prices if AT Skog can consolidate multiple harvests into a full shipload for special clients. Owners are encouraged to notify the organization early so that operations can be coordinated for optimal timing and market access.<\/p>\n

Summary of average timber prices in Norway (as of May 2025):<\/strong><\/p>\n

-Spruce sawlogs: > 1,000 NOK\/m\u00b3 (approx. 87 EUR\/m\u00b3)<\/p>\n

-Pine sawlogs : slightly lower than spruce, but also increased<\/p>\n

-Pulpwood: weakening demand, falling spot prices, particularly for pine<\/p>\n

-Fuelwood\/chips: lower demand and falling prices due to warm winter<\/p>","protected":false},"excerpt":{"rendered":"

Norway\u2019s timber market is booming in the first half of 2025, with timber prices reaching their highest levels in decades, driving record harvesting volumes and reshaping export flows. 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