Finnish sawmill company Westas reported improved results for 2025, as what it describes as a relatively balanced lumber market helped support prices despite weak construction activity across Europe.<\/p>\n
The company\u2019s net sales rose to \u20ac186 million (+12%), while operating profit increased by 20% to \u20ac8.2 million, with production reaching 455,000 m\u00b3. Exports accounted for 85% of output, underlining Westas\u2019 exposure to international markets.<\/p>\n
According to CEO Pekka Kopra, the European lumber market has remained more stable than expected given the prolonged downturn in construction.<\/p>\n
\u201cThe demand and supply of lumber have been somewhat surprisingly balanced and the price of lumber has remained stable,\u201d Kopra said in his financial statement review.<\/p>\n
In Westas\u2019 view, this balance reflects both weak demand and constrained supply. Construction activity across Europe has remained subdued due to economic uncertainty and geopolitical tensions, limiting consumption. At the same time, supply has tightened following several years of insect-driven logging, which reduced available harvest volumes, while sanctions on Russian lumber have further restricted supply to the European market.<\/p>\n
As a result, price development has held firm, particularly for spruce. Kopra noted that spruce lumber has seen stronger price development, while pine has lagged due to its greater exposure to export markets outside Europe.<\/p>\n
\u201cThe positive price development has particularly affected spruce lumber, while the price development of pine lumber has been clearly weaker than spruce due to its markets outside Europe,\u201d he said.<\/p>\n
The company also pointed to growing pressure elsewhere in the forest industry. Demand and prices for pulp and board have declined, leading to production cuts and an oversupply of sawmill side streams such as saw chips and pulpwood. Delivery prices for these by-products have fallen, while demand for biomass has weakened due to mild weather and low electricity prices, weighing on sawmill margins.<\/p>\n
Westas noted that sawmill production in Finland increased by around 7% in 2025, but has declined in early 2026 due to exceptionally cold weather, reducing lumber inventories to low levels. Lower stock levels have historically supported prices, and in the company\u2019s view, current conditions point to continued firmness in the near term.<\/p>\n
Kopra said the market is likely to remain relatively stable in 2026, with prices supported by low inventories, although risks are increasing.<\/p>\n
\u201cLumber prices have remained strong, so this year looks set to be at least reasonable,\u201d he said, adding that the war in Iran and its possible prolongation could raise uncertainty, increase export costs and add to inflationary pressures in Europe.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98307,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n