A Finnish research institute is predicting a fall in the country’s sawn timber production.
PTT says the decline is a knock-on result of the now-resolved labour dispute in the Finnish paper and pulp industry, which finally ended this summer.
The research specialist is forecasting production volumes will be 7-8% less this year – or around one million m3.
While sawn timber demand remains strong in Finland’s main export markets of Europe, Japan and the US, oversupply continues to tighten price competition, particularly in Europe.
PTT estimates that in 2005 the annual average export price for Finnish sawn timber will change by around 1.5%, while in 2006 it is expected to remain the same.
Despite several sawmills remaining closed, sawn timber production figures are not expected to fall any further, although PTT is warning the industry that it will face tough times in the next few years.
“The main reasons for the gloomy outlook are the oversupply of sawn timber and the declining supply of logs from the private forest owners due to the end of transition period of the forest taxation system at the end of this year,” stated the company.
Meanwhile, storm damage in Sweden and the Baltic states has had minor effects on roundwood markets in the Baltic Sea area. Roundwood imports to Finland, however, are expected to pick up considerably.
