Södra introduces saw log premium
May 28, 2009. Södra is introducing a premium of SEK 25 ($3.2) per cubic meter fub (solid volume excluding bark) on standard spruce and pine saw logs. The premium applies to contracts signed prior to August, 31.
May 28, 2009. /Lesprom Network/. Södra is introducing a premium of SEK 25 ($3.2) per cubic meter fub (solid volume excluding bark) on standard spruce and pine saw logs. The premium applies to contracts signed prior to August, 31, the company said in a statement received by Lesprom Network.
“Our mills are now running at full speed and we are anticipating a busy autumn in the forest. Our saw log terminals are nearly empty and we need more fresh wood straight from the forest,” said Urban Eriksson, director of forestry at Södra.
“Demand for saw logs has increased during the spring. The timber market has bottomed and our customers have started restocking again,” said Peter Nilsson, President of Södra Timber, Södra’s sawmill business area.
Contracting is underway with full harvesting expected to start mid-July. Demand for normal spruce and pine saw logs is particularly strong, as it is for oak saw logs and energy products.
Prices for energy products are being raised from August 1. Fuel wood prices, for example, will increase by SEK 30–50 ($3.9 - 6.4) per cubic meter fub. The price for logging residues will also be increased.
In early June, Södra will offer its members the chance to certify their forests under both FSC and PEFC. This offer will benefit suppliers who sign harvesting and wood delivery contracts with an extra premium of SEK 20 ($2.6) per cubic meter fub on dual-certified wood.