{"id":89279,"date":"2025-09-12T08:28:51","date_gmt":"2025-09-12T08:28:51","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/market-sentiment-in-swedish-softwood-sector-weakens-after-summer-declines\/"},"modified":"2025-09-19T09:05:02","modified_gmt":"2025-09-19T09:05:02","slug":"market-sentiment-in-swedish-softwood-sector-weakens-after-summer-declines","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/market-sentiment-in-swedish-softwood-sector-weakens-after-summer-declines\/","title":{"rendered":"Market sentiment in Swedish softwood sector weakens after summer declines"},"content":{"rendered":"

<\/span>The Swedish softwood lumber market is currently characterized by subdued demand, uncertainty, and significant cost pressures. After relative optimism in the spring, market sentiment weakened over the summer, with price pressure occurring at the same time as timber costs continue to rise, even though prices now appear to be declining. Market participants seem to have lowered expectations for the second half of the year and are instead looking toward next spring. Despite the summer price declines, most participants expect stabilization during the autumn, partly due to the sector\u2019s weak profitability.<\/p>\n

One of the main challenges is the large regional difference in timber costs and profitability within Sweden. Sawmills in northern Sweden show relatively good profitability, while many sawmills in southern Sweden are operating at a loss. This is mainly (but not solely) due to a significant difference in timber costs, with prices in southern Sweden estimated to be 300\u2013400 SEK (\u20ac27\u201336\/m\u00b3) per cubic meter higher than in the north. Even though timber prices in southern Sweden are now coming under downward pressure, sawmills will continue to face high costs for some time, as they first process the stock of \u201cexpensive\u201d logs they have already purchased. The autumn is expected to be particularly difficult for many sawmills in southern Sweden.<\/p>\n

Profitability is further pressured by declining revenues from by-products such as cellulose chips and energy wood, which typically account for 15\u201325% of a sawmill\u2019s total revenue depending on location and business setup. A weak pulp market and low electricity prices, which reduce demand from heating plants, are the main factors behind this decline.<\/p>\n

On the supply side, a certain global balance is maintained due to reduced production in Canada and Germany. In Sweden, harvesting levels remain stable, although production reductions are expected in southern Sweden during the second half of the year.<\/p>\n

A significant external uncertainty is the U.S. tariffs. The ongoing Section 232 investigation, which will determine whether timber is a security-critical product for the United States, creates uncertainty. A decision is expected by November. Although European products are currently exempt, there is a risk of future tariffs. At the same time, existing anti-dumping duties on Canadian timber have already increased from around 15% to nearly 35%. The effects of these measures have not yet been fully felt.<\/p>\n

However, small positive signs exist, such as increased activity in construction projects in Central Europe and recovery in tourism-dependent countries in Southern Europe. Infrastructure projects in Germany and hotel construction in the Mediterranean may provide some support for Swedish sawmills.<\/p>","protected":false},"excerpt":{"rendered":"

The Swedish softwood lumber market is currently characterized by subdued demand, uncertainty, and significant cost pressures. 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