The Finnish sawn timber sector will not share in the country’s forest industry growth due to keen market competition, according to a new forecast.
Pellervo Economic Research Institute’s (PTT) report says the sawn wood sector will not benefit from an upswing in forest product exports caused by a growth in the global economy.
PTT says construction and demand for sawn timber have grown during 2004, but increasing competition from both eastern and western Europe will reduce average wood export prices by 2%. Construction growth and sawn wood demand is predicted to weaken in 2005, with prices staying at this year’s level.
PTT researchers said: “Consequently, the tight times will continue in the sawmilling industry.”
However, production is expected to rise further from last year’s record of nearly 14 million m3.
Finland exported 8.1 million m3 of sawn timber in 2003, at an average price of €179/m3.
