Select Page

The uncertainty caused by the Ukraine war is also reflected in the demand for Finnish lumber. Uncertainty in the market is exacerbated by the massive effects of the Covid pandemic in China, for example, said Tommi Sneck , chairman of the Sawmill Industry Association, at the Wood from Finland conference in Helsinki on Thursday.

The situation is not being alleviated by the fact that soaring inflation and rising interest rates are undermining consumer confidence. Rising prices for construction materials and a change in the balance of goods flows are also affecting the market in a way that he says is difficult to predict.

On the other hand, the Finnish sawmills are currently making the necessary investments. According to Sneck, the background is the improvement in the profitability of the sawmill industry last year, which replaced the previous lean decade.

The growth of climate awareness is increasing the demand for wood products in the world, said Kai Merivuori , CEO of the Sawmill Industry Association .

According to him, the possibilities of the Finnish sawmill industry to utilize this development depend especially on the development of costs and the availability of domestic raw wood.

In 2021, lumber was Finland’s fourth most important export item. The value of exports of lumber and its processed products rose to EUR 2.8 billion and the revenue from logs paid to forest owners from logs to EUR 1.9 billion.

The post Russian invasion, Covid and inflation overshadow the outlook of the Finnish sawmill industry appeared first on Timber Industry News.