Swedish forest owners\u2019 association Norra Skog recorded a loss during the first half of 2026 after deciding not to pass the effects of the weak forest-products market on to its members through lower wood prices. Softwood lumber demand proved more stable than demand for pulp, paper and paperboard, but weak construction markets and high raw-material costs left the group with an operating loss of \u20ac4.8 million.<\/p>\n<\/div>\n
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Norra Skog reported operating revenue of approximately \u20ac281.5 million for January\u2013June 2026, down 1.3% from \u20ac285.2 million in the corresponding period of 2025. The change in profitability was much sharper: an operating profit of \u20ac15.3 million last year became a loss of \u20ac4.8 million.<\/p>\n
The association recorded a pre-tax loss of \u20ac3.9 million, compared with a pre-tax profit of \u20ac15.0 million one year earlier. Financial items provided a positive contribution of around \u20ac0.9 million, partly limiting the operating deficit.<\/p>\n
The figures show the cost of maintaining competitive wood-purchasing terms during a period in which the earnings generated by forest products have deteriorated. Norra Skog deliberately avoided responding to weaker industrial margins by reducing the prices and conditions offered to its forest-owner members.<\/p>\n
Chairman Stig H\u00f6gberg argued that a forest stand harvested today has taken several generations to grow and that its value should not be determined entirely by market conditions in a single year. With cash holdings of approximately \u20ac178 million, the association believes it can carry the loss itself and limit sudden changes in the wood income received by individual members.<\/p>\n
Pulp and paperboard weigh on earnings<\/strong><\/p>\n The deterioration was concentrated primarily in pulp, paperboard and paper, where weak demand and difficult conditions on several export markets reduced profitability. High wood costs added pressure at industrial level, while geopolitical conflict and trade barriers made customers more reluctant to commit to larger orders.<\/p>\n Softwood lumber performed better in relative terms. Demand remained more stable even as residential and commercial construction stayed weak across much of the world. Stability in lumber volumes was not sufficient, however, to compensate for the weaker performance elsewhere in the group\u2019s forest-industry portfolio.<\/p>\n The contrast between lumber and pulp is significant for Norra Skog. The association operates sawmills through Norra Timber and also has exposure to pulp through its stake in Husum Pulp. As a result, the first-half accounts capture both the comparatively steadier lumber market and the much more difficult conditions facing pulp producers.<\/p>\n Greater share of a shrinking harvesting market<\/strong><\/p>\n Norra Skog increased the volume of wood secured from its members despite a decline in total harvesting activity across Sweden. Its share of the area covered by harvesting notifications submitted to the Swedish Forest Agency increased during the period, indicating that the association gained ground in its northern operating regions.<\/p>\n Demand also rose for advisory work, forest-value inventories conducted before harvesting, forest-economic services, forest-road management and property brokerage.<\/p>\n The growing demand for field inventories is tied to the risk that forest owners may face restrictions after conservation values are identified on their properties. Norra Skog has expanded its specialist capacity to help members assess these risks before harvesting and reduce the possibility of uncompensated logging bans.<\/p>\n The association\u2019s decision to retain attractive wood-purchasing terms may have supported its stronger position among forest owners. It also contributed to the gap between greater procured volumes and weaker industrial earnings.<\/p>\n Sawmill investment continues despite the loss<\/strong><\/p>\n Norra Skog is continuing to invest in its lumber operations rather than suspending projects until market conditions improve. Its S\u00e4var sawmill has received a computer-tomography system for log scanning, allowing the mill to evaluate internal wood characteristics before sawing and improve the allocation of logs to finished products.<\/p>\n At Hissmofors, the company has expanded sorting capacity and installed new equipment for placing stacking sticks between lumber layers. These investments are intended to improve recovery, product sorting and production efficiency at a time when sawmills have little room to absorb additional raw-material or operating costs.<\/p>\n The projects also indicate that Norra Skog treats the present loss as a cyclical problem rather than a reason to reduce its long-term commitment to lumber production.<\/p>\n Nordic production cuts could support lumber prices<\/strong><\/p>\n Norra Skog expects trading conditions during the remainder of 2026 to remain broadly similar to those of the first half. Economic activity is moving in a more favourable direction, but uncertainty continues to delay larger purchases among international customers.<\/p>\n Lower production rates across the Nordic sawmill industry could provide some support for softwood lumber prices. The scope for a rapid improvement remains limited by weak construction activity in important export markets.<\/p>\n This creates a market in which supply restraint may prevent a sharper price decline without producing a strong recovery in consumption. Sawmills will therefore remain dependent on disciplined production, careful stock management and the timing of purchasing decisions by distributors and construction-sector customers.<\/p>\n Pulp and paperboard markets have shown some signs of improvement, including higher prices and a modest strengthening of demand. Competition nevertheless remains intense, with developments in Europe, North America and China continuing to influence both prices and capacity utilisation.<\/p>\n Norra Skog expects caution to dominate the second half of the year. A clearer improvement in the forest-products market is considered unlikely before some point in 2027. Until then, the association appears prepared to use its financial position to shield forest owners from part of the downturn, even if doing so leaves its own accounts temporarily in deficit.<\/p>","protected":false},"excerpt":{"rendered":" Swedish forest owners\u2019 association Norra Skog recorded a loss during the first half of 2026 after deciding not to pass the effects of the weak forest-products market on to its members through lower wood prices. Softwood lumber demand proved more … Continue reading \n\n
\n \nJanuary\u2013June<\/th>\n 2025<\/th>\n 2026<\/th>\n<\/tr>\n<\/thead>\n \n Operating revenue<\/td>\n \u20ac285.2 million<\/td>\n \u20ac281.5 million<\/td>\n<\/tr>\n \n Operating result<\/td>\n +\u20ac15.3 million<\/td>\n \u2212\u20ac4.8 million<\/td>\n<\/tr>\n \n Financial result<\/td>\n \u2212\u20ac0.4 million<\/td>\n +\u20ac0.9 million<\/td>\n<\/tr>\n \n Pre-tax result<\/td>\n +\u20ac15.0 million<\/td>\n \u2212\u20ac3.9 million<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n