Finnish paper industry restricting production
Paper production in Finland will remain this year 1-3 per cent below last year’s figure. The reduction is driven by the weak economic situation in Finland’s main export markets as well as permanently lowering consumption due to increasing electronic communications. Despite economic growth, paper production is set to decline next year as well.
The average export price of Finnish paper will rise slightly this year and the next. Increments in the price level however call for further production restrictions and paper machine closures in Europe. Permanent shutdowns of paper machines are possible in Finland as well. The market situation for paperboard is much brighter than for paper. This enables both export amount and price to be increased this year and next.
Positive tone in pulp markets continue
The price of pulp has remained high for the past three years. The market situation will remain strong and Finnish exports of pulp are forecasted to grow further this year and next. Markups will be achieved on this year’s average export price of pulp from Finland. The price will stay at a rather high level next year as well.
Profitability of Finnish sawnwood industry improving slowly
The profitability of Finnish sawnwood industry is expected to improve this year by means of increased production and average export price. Subdued construction activity in Europe is partly compensated with increasing sawnwood demand elsewhere. Finnish sawmills’ competitiveness is assisted by the anticipated weakening of the average exchange rate of euro against the Swedish krone. The production of sawnwood is projected to rise next year due to gradually increasing construction in Europe and Finland.