Timber production still rising in Finland

According to Finnish Pellervo Economic Research Institute’s (PTT) expectations, production of Finnish softwood timber will increase by 4-5 % comparing to the same period of 2017.

Following the growth of 5 % in 2017 (to 11.94m m³ of softwood timber), the spring forecast predicts a rise to around 12.4-12.5m m³.

In accordance with the newest forecast, the increase of volumes of spruce and pine timber is expected to be equal. The expected growth in production this year is caused mainly by permanent positive sales conditions on the main timber export markets of Finland. Although the PPT states that growth of production of timber will likely flatten out, it is still expecting an increase of another +2-3 % in 2019.

PTT is also predicting timber prices to rise by +4-5 % in 2018, an increase that can be compared with that of the production figures. Due to the recently renewed increase in demand from the markets of North Africa and also stable sales conditions in China, the institute is predicting above-average growth of 8-9 % for pine timber compared with 2017; prices for spruce are expected to be +2-3 % higher.

Information provided according to www.euwid-wood-products.com