Uncertainty is already visible in Finland’s lumber market, and demand and prices for lumber have started to fall sharply, the Finnish Sawmill Association reports.
In addition to economic uncertainty, the decline is explained by inflation, the change in consumer demand following the pandemic and rising interest rates. In addition, shortcomings in the availability of labor and construction materials are penalizing the construction industry and slowing down the start-up of construction projects.
According to the Finnish sawmill industry, there seems to be pressure in Finland to harvest fiber and energy wood after the end of Russian imports. Despite the increase in demand, the price of pulpwood seems to remain under control, but the prices of logs are rising, even though the demand for lumber is declining.
“In a competitive market economy, this should not be possible,” says Kai Merivuori , CEO of Finland’s Sawmill Industry Association .
It is also noteworthy that the ban on imports of Russian lumber will not enter into force in Europe until the beginning of July. Import volumes of Russian goods have even increased in those markets where the origin of the product is not required for PEFC or FSC certification.