Swedish softwood lumber production has fallen by 7% so far in 2026, as high sawlog costs and weak selling prices force producers to reduce output and close less competitive mills.<\/p>\n
Sweden\u2019s sawmills had maintained annual production at around 18 million m\u00b3 during the previous two years, despite weak construction activity in Europe and poor margins across much of the sector. A normal production year is closer to 18.5 million m\u00b3, according to Christian Nielsen, wood products market analyst at the Swedish Forest Industries Federation.<\/p>\n
That resistance has now broken. Production cuts are spreading across the industry, with companies no longer willing to keep mills running at high rates simply to retain sales volumes. The reduction also comes as Sweden\u2019s raw-material market begins to change after two years of exceptionally high sawlog prices.<\/p>\n
Nielsen said sawmills are likely to face a growing imbalance between spruce and pine availability. This will require mills and their customers to become more flexible in the species and grades they use. For producers built around a narrow raw-material mix, however, switching between spruce and pine is not straightforward. Product specifications, customer contracts and equipment configurations can all limit the substitution.<\/p>\n
The 7% national decline was reported shortly before Moelven announced plans to close its \u00c5rj\u00e4ng sawmill in western Sweden. The mill produces about 110,000 m\u00b3 of softwood lumber annually and employs 38 people. It recorded an operating loss of SEK 42.1 million (\u20ac3.8 million) in 2025, compared with a loss of SEK 2.4 million (\u20ac220,000) a year earlier. Its operating margin fell to \u22129.8%.<\/p>\n
Moelven said sawlog supplies would be concentrated at plants with better long-term conditions. The decision is another sign that access to wood is no longer enough on its own: the raw material must be processed at mills with the scale, product mix and logistics required to absorb current costs.<\/p>\n
Holmen is also cutting production at its Linghem sawmill by 64%, with 18 jobs affected. Vida has decided to close its Orrefors and Urshult sawmills in Sm\u00e5land, affecting around 70 employees. Together, the closures and production reductions mark a shift from temporary adjustments to a more permanent removal of capacity.<\/p>\n
Swedish sawmills were protected for a time by a weak krona and strong export positions in the UK, continental Europe, North Africa and the US. Those advantages were increasingly offset by record sawlog costs, while softwood lumber prices failed to rise at the same pace. The resulting squeeze left many mills processing expensive timber into lumber sold at margins too low to cover production and financing costs.<\/p>\n
The production decline may eventually help tighten the European softwood lumber market. In the shorter term, however, it is evidence of how far conditions have deteriorated in one of Europe\u2019s largest producing countries. Swedish mills are responding not to a lack of orders alone, but to the price at which those orders can be supplied.<\/p>\n
With several mills already removed or scheduled for closure, Sweden is unlikely to return quickly to its normal output of around 18.5 million m\u00b3. More production will be concentrated at larger plants, while smaller and older mills remain exposed if sawlog costs stay high and the European construction recovery remains slow.<\/p>","protected":false},"excerpt":{"rendered":"
Swedish softwood lumber production has fallen by 7% so far in 2026, as high sawlog costs and weak selling prices force producers to reduce output and close less competitive mills.<\/p>","protected":false},"author":1,"featured_media":99901,"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-99900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n