Forest industry’s structural change continues

Forest industry investments elevate use of roundwood
Forest industry investments in production capacity and especially the production of spruce timber increase forest industry’s use of wood in 2016. The total use of wood will increase also next year by a couple of percent reaching 68 million cubic metres as new manufacturing capacity will start operating. Altogether the use of wood does not reach the level of the peak years preceding the recent recession but the use of domestic wood and the volumes of roundwood removals exceed records already during this forecast period. Roundwood trade and removals will reach the full annual level of forest industry’s increased need for raw materials only in 2018.
 
Spruce sales and removals active
This year’s roundwood sales volumes have clearly increased between January and August compared to the same months of the previous year. While a major part of the recent capacity increases has been in the pulp industry, log market still mainly dictates the supply of cutting areas. Increased removals and future forest industry investments will increase the total of standing sales, which will grow by 12–15 per cent in 2016 compared to the previous year. Roundwood trade concentrates especially on spruce cutting and thinning areas. Growth of roundwood sales is expected to continue next year.
 
The development of the average nominal stumpage price has differentiated between tree species in the first part of this year. In January-August pine and birch prices have been slightly lower compared to the same period last year, whereas the prices of spruce logs and spruce pulpwood are slightly higher. Altogether, the annual average price of wood will stay below previous year’s price. In 2017 a slight price increase is to be expected.
 
Positive tone in the forest sector has been ongoing for a few years now and will be even intensified during this forecast period due to actualized and announced industry investments. The demand for roundwood will also rise by strengthening final product markets in the wood products industry. Especially the recovery of pine sawnwood exports would lift the demand of pine cutting areas and thus the yield of pine pulpwood as well.