Pellervo Economic Research Institute’s (PTT) latest forecast says rising log prices and reduced capacity are to blame for holding back production.
|t believes the volume of sawn timber for export will rise 1-2% in 2006 from the 7.7 million m3 recorded in 2005, while prices will be up 7-8% on last year’s average export price of €170/m3.
PTT predicts volumes could reduce by up to 2% in 2007, with average prices remaining similar to this year.
“The demand for sawn timber is high in Europe,” PTT’s forecast says. “Export to the US and elsewhere outside Europe has also been brisk.
“The export price of Finnish sawn timber will increase significantly this year and the profitability of the Finnish sawmilling industry is improving to some extent.”
