Timber sales remain sluggish in June: sawmills in urgent need of logs

Jul 08, 2009. /Lesprom Network/. The forest industry has managed to purchase only about 3.3 million cubic metres of timber from private forests in January-June, Finnish Forest Industries Federation reported. The amount fell to less than a third, i.e. to just 31% of the volume purchased during the corresponding period last year. Demand for wood is, however, now picking up and sellers should take rapid action in order to benefit from this year’s 50% tax break on revenue from timber sales. The amount of timber purchased in June was about 360,000 cubic metres – about the same as in May. Purchases of pine logs fell by 61%, spruce logs by 58% and birch logs by 74% from Jan-Jun 2008. Purchases of pine and birch pulpwood were down 74% and spruce pulpwood purchases by 67% from the corresponding period of 2008. Pine log stumpage prices increased by 4% and spruce log stumpage prices by 2% from May and were, on average, €43 per cubic metre. Birch log stumpage prices remained unchanged from May at €37 per cubic metre on average. The stumpage price of pine pulpwood remained unchanged at €14 per cubic metre, while spruce pulpwood prices increased by 1% to €19 per cubic metre and birch pulpwood prices rose by 4% to €13 per cubic metre. Demand for sawn timber remains weak in the key export markets. In spite of this, sawmills are suffering from log shortages because only a small amount of timber is being sold. Getting timber onto the market at a competitive price is now of crucial significance to safeguard the continued operation of Finnish sawmills.