Demand for Swedish wood products remains high. All indications are that 2021 will be a strong year for the Swedish forest industry.
“It looks very bright,” says Christian Nielsen, market analyst at Swedish Forest Industries (Skogsindustrierna), as quoted by the Swedish daily Dagens Industri.
There is high pressure in the Swedish wood industry right now. Demand for Swedish wood products is high and stock levels are low.
“In principle, all wood products sawn in Sweden go directly from production to the customer. I receive reports from customers to our members who say that they have difficulty finding the volumes they want to buy “, says Christian Nielsen who analyzes the market for Skogsindustrierna.
Although the market declined slightly last spring, when many countries closed down, Swedish sawmills have performed well during the pandemic. The explanation is that production fell sharply for the large producer Canada.
During the winter, the effects of the pandemic have diminished, but demand for wood remains high and prices have risen sharply, especially in the United States and the United Kingdom. If the market in those countries calms down, there is demand in other parts of the world.
“There is a high demand in China and Egypt, where they held back during the autumn when they experienced high prices,” says Christian Nielsen.
The good times for the Swedish wood industry are partly due to the fact that the world economy is about to turn around. Also included in the calculation are macro trends, where increased environmental and climate awareness makes wood construction more attractive.
“It looks very bright. I try to keep track of warning signals, but no matter how I search and search, I have a hard time seeing what could dampen the market in the coming six months,” says Christian Nielsen.
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