Export volumes in Finland’s forest industry are expected to grow moderately during 2004-2005 with prices rising only slowly, according to Pellervo Economic Research Institute (PTT).
Helsinki-based PTT says the industry is burdened by oversupply on the European markets but strong domestic demand will help production volumes. The roundwood trade is expected to grow slightly from the previous year and average stumpage prices of softwood saw logs should remain stable.
An improvement in European residential construction is predicted to increase demand for sawn timber. But growing supply and the strong euro mean sawn timber export prices are expected to remain below last year’s figures.
Domestic demand, PTT forecasts, will continue to grow due to active housing construction in Finland.
The total volume of the country’s timber trade, 40.9 million m3 in 2003, is expected to rise 10% this year.
