Koskisen Corporation entered 2026 with largely stable pricing across its core wood products, even as cost pressures continued to build across the value chain. In a pre-silent period call with analysts on April 14, the Finnish wood processing group outlined how subdued construction demand, rising logistics costs and geopolitical tensions are shaping market conditions.<\/p>\n
The company said sawn timber and birch plywood prices held broadly steady in the first quarter, but signs of upward pressure are emerging as higher raw material, energy and freight costs begin to filter through. At the same time, demand\u2014particularly from the construction sector\u2014remains moderate, limiting the pace at which producers can pass on these increases.<\/p>\n
Below is a full summary of the key questions and answers discussed during the call.<\/p>\n
Market<\/strong><\/p>\n Q: How have sawn timber prices developed during Q1, and do you see rising inflationary pressures affecting pricing dynamics in the market?<\/em> Q: How has birch plywood pricing developed during Q1, and do you see any pricing pressures?<\/em> Q: How do you expect sawn timber and panel product prices to develop in Q2?<\/em> Q: Do you expect the recent rise in market interest rates to affect construction activity and demand for wood products during the rest of the year across different markets?<\/em> Q: Do you expect the seasonal pattern of sawn timber demand to materialize as usual this summer?<\/em> Q: Did birch plywood demand meet expectations during Q1, and did you observe any changes in demand or order flows after the outbreak of the war in Iran in March?<\/em> Q: Has the situation in the Middle East affected demand or deliveries?<\/em> Operational performance<\/strong><\/p>\n Q: The comparison period was quite strong in the Sawn Timber Segment in terms of both volume and profitability. Was there anything exceptional in Q1\u201925 that should be considered in year-on-year comparisons?<\/em> Q: Did sawn timber demand and production meet expectations during Q1?<\/em> Q: Did the outbreak of the war in Iran affect sawn timber order flows in March?<\/em> Q: Are there any updates regarding the integration of Iisvesi and production optimization between sawmills?<\/em> Q: How did birch plywood production perform in Q1?<\/em> Q: How have investments in the Panel Segment progressed, and will the planned investments be completed during the summer shutdown?<\/em> Q: Have there been any changes in the development of the chipboard segment compared to the comparison period or Q4 during Q1?<\/em> Q: Did the cold winter cause challenges in production or operations in general?<\/em> Q: Has transportation capacity been sufficient to match production?<\/em> Q: How do you view inflationary pressures on cost components other than wood for the rest of the year?<\/em> Q: How have order books developed during the spring, and how does the situation compare to last year?<\/em> Q: What are your plans regarding summer production shutdowns?<\/em> Wood procurement and forest energy<\/strong><\/p>\n Q: Did the early arrival of spring in Southern Finland affect harvesting plans, wood availability, or harvesting costs?<\/em> Q: Log prices appear to have turned to a slight upward trend. In your view, is this driven by normal seasonality or other factors?<\/em> Q: How did trading in energy wood fractions develop, and what is the inventory situation for the next season?<\/em>
\nA: Sawn timber prices remained at the level of the previous quarter during the first quarter. In the fragmented sawn timber market, it has typically been difficult to pass increased costs directly on to customer prices. However, price levels appear likely to rise moderately in the second quarter, partly offsetting the broad-based cost inflation across the value chain.<\/p>\n
\nA: Birch plywood prices remained roughly at the level of the previous quarter. There are upward pressures on pricing due to increased raw material and logistics costs.<\/p>\n
\nA: Due to prolonged cost pressures affecting both Finnish and international competitors, as well as rising costs caused by the escalating situation in the Middle East, there is pressure to increase sawn timber prices. However, the weak demand\u2014especially in the construction sector\u2014continues to slow the pass-through of cost increases to market prices. The impact of potential price increases may also be diluted by already elevated freight rates, as well as fuel costs related to logging and transportation.<\/p>\n
\nA: It is expected that the subdued trend in the construction sector will continue, and demand for wood products used in construction will remain moderate. Market sentiment was cautiously optimistic before the outbreak of the war in Iran in March, but the crisis has since dampened activity. The outlook for the rest of the year will largely depend on how consumer confidence develops and whether this translates into increased demand for wood products.<\/p>\n
\nA: Some seasonal improvement in demand for sawn timber is visible, but as in previous years, it is expected to remain modest. The outlook for the rest of the year remains highly uncertain.<\/p>\n
\nA: Demand has remained at a good level at the beginning of the year, and so far there have been no signs of changes in demand.<\/p>\n
\nA: The situation in the Middle East has affected demand and deliveries in that market. Deliveries of Scandinavian sawn timber products are mainly directed to the Red Sea region rather than the Persian Gulf. The situation has particularly increased delivery costs in the Red Sea region.<\/p>\n
\nA: Production and delivery volumes of processed products, as well as the prices of by-products, pulpwood, and energy fractions, were at a higher level during the comparison period.<\/p>\n
\nA: Sawn timber demand was broadly in line with expectations. Despite moderate demand, sawmills were able to operate at full capacity. However, exceptionally cold weather at the beginning of the year and technical challenges at the J\u00e4rvel\u00e4 sawmill led to a clear shortfall in production volumes versus expectations. Production at Iisvesi proceeded as planned.<\/p>\n
\nA: Market sentiment before the war in Iran was cautiously optimistic, but the situation became subdued across almost all markets following the outbreak. Toward the end of March, activity picked up again, and orders for the second quarter were secured.<\/p>\n
\nA: The Iisvesi sawmill has been fully integrated into Koskisen\u2019s Sawn Timber Segment operations. Through production optimization and efficiency improvements, Iisvesi achieved an all-time production record in 2025.<\/p>\n
\nA: Birch plywood production faced some challenges, partly due to the cold weather at the beginning of the year. Despite these challenges, planned volumes were largely achieved.<\/p>\n
\nA: The second phase of the Panel Segment investment program is largely scheduled to be executed during the summer shutdown in July. We expect the investments to be completed as planned.<\/p>\n
\nA: Demand for chipboard has remained moderate due to the continued downturn in construction activity.<\/p>\n
\nA: Production at the J\u00e4rvel\u00e4 sawmill fell short of targets due to cold weather and technical issues. In plywood production, cold weather complicated the ramp-up of new production technology. High energy prices also affected the profitability of both businesses at the beginning of the year.<\/p>\n
\nA: Transportation capacity has broadly matched production, although the situation in the Middle East has affected the availability and pricing of ocean freight.<\/p>\n
\nA: The war in Iran has increased the prices of certain raw materials, such as adhesives and coatings. At the same time, logistics costs and fuel costs related to wood procurement have risen significantly. The development of the situation in the Middle East will continue to influence costs for the remainder of the year.<\/p>\n
\nA: In the Sawn Timber Segment, most contracts for second-quarter volumes have been concluded, and demand is broadly in line with the same period last year. In the Panel Segment, plywood order volumes have been higher than typical for the first quarter, while chipboard order volumes have been somewhat lower compared to last year.<\/p>\n
\nA: Summer shutdowns will be carried out in July, in line with previous years. In the Panel Segment, shutdown durations range from two to four weeks depending on the product group. During this time, regular maintenance and servicing will be carried out, along with the installation of investments under the ongoing investment program. In the Sawn Timber Industry, shutdown durations vary by department and site, with a maximum of approximately two weeks.<\/p>\n
\nA: Harvesting conditions in Southern Finland ended at winter harvesting sites approximately two weeks earlier than expected, which meant that some of the harvesting planned for March was not completed. On the other hand, spring has progressed rapidly, and it appears that harvesting operations can resume slightly earlier than usual. The early arrival of spring has not had an impact on wood availability or harvesting costs. Costs have mainly been driven up by rising fuel prices as a result of the Middle East crisis. This is reflected, with a slight delay, in the mill price of raw material.<\/p>\n
\nA: The slight increase appears to be mainly driven by seasonality. However, we expect the increase to remain moderate due to weak price development of end products and significantly higher harvesting and logistics costs.<\/p>\n
\nA: The severe cold weather at the beginning of the year and high electricity prices significantly increased deliveries of energy wood fractions, resulting in reduced inventories for both sellers and buyers, according to our estimates. The starting position and demand for the next season therefore appear to be stronger than last year.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":49943,"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-98440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n