Forest17.01.2011

Strong demand for all types of wood

Log yard at Koskisen's Järvelä mill area.

Log yard at Koskisen's Järvelä mill area.

Market forecasts by several research institutes indicate a positive trend in the demand for nearly all wood products.

However, there has been quite a discrepancy between market forecasts and the actual market situation: the autumn was very challenging for sawn timber trade, and there were weekly fluctuations in birch plywood too. The price of sawn softwood fell some 10–20% in the autumn, and demand was very sluggish. Demand for birch plywood products has picked up after hitting rock bottom, but there is still a ways to go before we reach the price and demand level of three years ago.

Owing to the problems in eurozone countries and the recent recession, trade has become abrupt and insecure. Once the winter is over we will be somewhat wiser as to how the end product market is developing. The signs from the wood products markets have so far been anything but consistently positive.

The utilisation rates of our production facilities have been relatively high, and demand for logs is good. The Järvelä sawmill will consume at least the same volume of or more spruce and pine logs as in 2010, so the prerequisites for softwood log trade are good. Our aim is to supply our birch plywood mill as well as birch sawmill and birch veneer mill in Hirvensalmi with Finnish birch as far as possible, which means demand for birch will also be solid. We are able to make our wood trade partners a competitive total offer for harvesting residues, stumps, and young forest energy wood and forest management services. As demand for pulp wood is also high, demand for all wood is basically strong and the prerequisites for wood trade are very good.