{"id":96941,"date":"2025-09-23T12:49:34","date_gmt":"2025-09-23T12:49:34","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=96941"},"modified":"2025-09-25T12:49:47","modified_gmt":"2025-09-25T12:49:47","slug":"norway-sawmills-under-pressure-as-timber-prices-remain-high-and-lumber-demand-weak","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/norway-sawmills-under-pressure-as-timber-prices-remain-high-and-lumber-demand-weak\/","title":{"rendered":"Norway: Sawmills under pressure as timber prices remain high and lumber demand weak"},"content":{"rendered":"

The Norwegian wood industry is facing tough times. How will the market develop? Sales Manager H\u00e5kon Bakken and CEO Gudmund Nordtun provide their insights.<\/p>\n

Strong forestry activity<\/strong><\/p>\n

High activity in forestry has continued into 2025. By the end of August, 9 million cubic meters of timber had been measured in Norway so far this year. The corresponding figure for 2024 was just under 8.4 million cubic meters.<\/p>\n

\u201cThis is an increase of seven percent from the record year 2024,\u201d comments Sales Manager H\u00e5kon Bakken at Glommen Mj\u00f8sen Skog.<\/p>\n

Solid demand from industry has given full momentum to forestry in recent years, and forest owners have responded to the strong need.<\/p>\n

This demand has resulted in high timber prices.<\/p>\n

Timber prices rise above long-term levels<\/strong><\/p>\n

The average price for sawlogs over the past ten years is approximately 580 NOK (50 EUR) per cubic meter.<\/p>\n

\u201cIt is only in the last two years that prices have moved significantly above that level. We see about the same in the pulpwood curve,\u201d says Bakken.<\/p>\n

Although higher prices are preferable, the timber market has always been cyclical. Overheated markets often culminate in reduced demand and falling prices.<\/p>\n

\u201cAnd now it is starting to cool down. The sawmills are still experiencing a particularly demanding lumber market and have built up large stocks. Even the strongest sawmill industries are now reporting red figures,\u201d says Bakken.<\/p>\n

He sees similar developments in pulpwood:<\/p>\n

\u201cIn the years 2022\u20132024, there was strong demand for bio-wood in Scandinavia, and large volumes of pulpwood were chipped and used for energy. Now, however, supply is abundant, and demand has peaked,\u201d he explains.<\/p>\n

A demanding balancing act<\/strong><\/p>\n

Managing Director Gudmund Nordtun of Glommen Mj\u00f8sen Skog notes that the industry has been balancing on a knife-edge for some time.<\/p>\n

\u201cIt is a complex situation that has created the large gap in the markets,\u201d he comments.<\/p>\n

Concerns about raw material shortages in the sawmill industry have kept timber prices high. International factors have also driven demand: forest dieback in southern Sweden and Central Europe caused by drought and bark beetle infestations, and the absence of Russian timber from the European market due to the war in Ukraine.<\/p>\n

\u201cOn top of this, Swedish sawmills have expanded their capacity and demand after the boom years during the pandemic,\u201d Nordtun adds.<\/p>\n

At the other end of the value chain, however, lumber demand has been weak. Geopolitical unrest, high prices, and high interest rates have created a wait-and-see construction market both nationally and internationally.<\/p>\n

Nordtun recalls that the situation was the opposite during the pandemic: strong demand for lumber and high product prices, while timber prices remained low.<\/p>\n

\u201cThis shows that the mechanisms work both ways \u2013 and that is natural in a free, international market without regulation,\u201d he says.<\/p>\n

Pressure on the sawmill industry<\/strong><\/p>\n

The difficult situation is now leading to concrete measures.<\/p>\n

\u201cIt is tough, and we are worried about the developments. Moelven Industrier, in which Glommen Mj\u00f8sen Skog is the largest shareholder, has closed sawmills and reduced capacity at others,\u201d Nordtun explains.<\/p>\n

He stresses that Glommen Mj\u00f8sen Skog\u2019s main task is to continue being a predictable, long-term supplier to the industry, while at the same time ensuring good conditions, quality, and reliability for forest owners.<\/p>\n

\u201cWe prioritize delivering timber to the domestic industry. We want to build a national value chain, and therefore maintain a low export share of sawlogs. Almost 90 percent of our sawlogs go to Moelven and other Norwegian sawmills,\u201d says Nordtun.<\/p>\n

Still, he underlines that cooperation must follow market principles:<\/p>\n

\u201cOur relationship with Moelven and other industries is at arm\u2019s length. Our goal remains to ensure forest owners secure and stable sales, favorable conditions, and sound framework policies,\u201d he says.<\/p>\n

Wood as a renewable winner<\/strong><\/p>\n

Despite the current difficulties, Nordtun is certain about the future.<\/p>\n

\u201cValue creation from forests will continue to be a winner. Demand for wood-based solutions will grow in line with the need for climate-friendly materials \u2013 creating good prospects for both forest owners and the wood industry,\u201d he says.<\/p>\n

Bakken agrees, though he points to a pricing mismatch:<\/p>\n

\u201cIt is a pity that the market is not rewarding lumber better today. Compared to substitutes, lumber is underpriced. Steel and concrete have shown much stronger price trends over time. The cost of lumber in a typical residential building is only a tiny fraction of the overall construction cost,\u201d he says.<\/p>\n

He believes this imbalance will eventually correct itself.<\/p>\n

\u201cBut in the end, timber prices will depend on the broader world situation. Security, confidence in the future, and stronger private finances are necessary. At the same time, we are facing a restructuring in which industrial capacity will be adapted to the forest\u2019s raw material base. Everything indicates continued demand for renewable building materials in the future \u2013 along with lumber prices that will ensure the ability to pay for timber,\u201d Bakken concludes.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":96942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,4714],"tags":[3384,3306,3285,3348,4071],"class_list":["post-96941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-wood-industry-prices","tag-demand","tag-lumber","tag-norway","tag-sawmills","tag-timber-prices","topic-forestry","topic-lumber","topic-price-analysis-and-info","topic-sawmilling","topic-statistics","topic-wood-construction","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\nNorway: Sawmills under pressure as timber prices remain high and lumber demand weak - 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