Softwood lumber production in Finland has increased since the start of 2025, but weak demand and uncertainty are clouding the outlook. Matti Kyl\u00e4vainio, co-owner of Keitele Group and chairman of the Finnish Sawmilling Industry Association, questions whether the bottom of the current sawmill cycle will be reached next winter.<\/p>\n
Utilization rates at Finnish sawmills have averaged around 75%, leaving room for production growth. However, geopolitical tensions, sluggish construction activity in Europe, and the unclear impact of U.S. tariffs are affecting the market.<\/p>\n
Raw material prices are rising sharply, while end-product market conditions remain volatile. Kyl\u00e4vainio notes that, despite sanctions, inexpensive Russian softwood lumber continues to flow to markets in China, Japan, and the Middle East. In many cases, selling price\u2014not certification\u2014is the decisive factor for buyers.<\/p>\n
Keitele Group exports 94% of its softwood lumber, and the company sources wood from cultivated and thinned forests in Upper Lapland, provided local agreements are in place. Environmental restrictions prevent large-scale harvesting of natural forests in Lapland, but small logs and thinning operations remain viable for sawmills such as Keitele\u2019s Kemij\u00e4rvi facility.<\/p>\n
Kyl\u00e4vainio adds that Lapland\u2019s forests are aging and maturing, meaning that more softwood lumber will become available in the coming years, potentially increasing supply and influencing the European market for Finnish softwood lumber.<\/p>","protected":false},"excerpt":{"rendered":"
Softwood lumber production in Finland has increased since the start of 2025, but weak demand and uncertainty are clouding the outlook. Matti Kyl\u00e4vainio, co-owner of Keitele Group and chairman of the Finnish Sawmilling Industry Association, questions whether the bottom of … Continue reading