Roundwood sales liven up in May – need still exceeds availability twofold

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This year’s January-May aggregate purchase volume, 8.2 million cubic metres, likewise only came to half of the amount achieved in the previous year.

 

 

Demand for timber remains good. The dry early summer created good conditions for harvesting and even enabled logging in winter locations.  

The forest industry’s January-May purchases of pine logs came to 36%, spruce logs to 28% and birch logs to 55% of the procurement levels attained in the corresponding period of 2007. The matching figures for the industry’s pine and birch pulpwood purchases were 74% and 85%, respectively. Spruce pulpwood purchases were down by more than half.

Timber supply must strengthen so that logging operations may be continued

“The recent campaign launched by the Central Union of Agricultural Producers and Forest Owners and the Finnish Forest Industries Federation to get domestic wood sales going is a good opening and demonstrates that there is a shared willingness to liven up timber sales. If sufficient amounts of raw materials are not available, the forest industry cannot operate in Finland – and without a competitive industry, the economic value of Finnish forests will decline substantially,” says Finnish Forest Industries Federation President, Dr. Anne Brunila.

"Finnish prices for wood raw material are high in international comparison and it is not possible to increase the level of costs. Over 90% of the industry’s output is exported to the global markets and the ability to supply products at a competitive cost level is vital. It is in the interest of forest owners to enable the diverse utilisation of wood and that there are numerous buyers for it,” Brunila points out.

Prices of wood at a good level

Stumpage prices increase somewhat from April. The stumpage price of pine logs rose by a percent to an average of €59 per cubic metre. The price of spruce logs increased by 3% and they are now being sold for the same price as pine logs. The price of birch logs decreased by one percent from April to €50 per cubic metre.

Pulpwood prices increased by a couple of percent in May. The average stumpage price of pine and birch pulpwood was €16-17 per cubic metre in May and €24 per cubic metre for spruce pulpwood.

Compared to 2006, the last normal year for timber sales, prices have increased clearly. The prices of pine and spruce logs are 23–28% higher. Also the price of birch logs are 18% higher. The prices of pine and birch fiber wood have increased by 32-35%. The price of spruce fiber wood is 10% higher.  

One half of roundwood sales are purchases for delivery

The market situation for delivery sales, i.e. timber harvested by forest owners themselves, has been good throughout the year. The share of these sales of all transactions has increased to almost half, when they accounted for only a fifth of all sales in January-May 2007. The delivery prices of logs have increased by 2-13% during the year and by 15-22% for pulpwood.

Roundwood purchase volumes from private forests

Stumpage prices

Further information:

Anu Islander, Senior Adviser (Forestry), Finnish Forest Industries Federation, tel. +358 (0)9 132 6678, +358 (0)40 729 3678