The forestry industry in Finland is currently experiencing a lively and dynamic season. The prices of timber have skyrocketed, indicating a significant shift in the market. In April alone, nominal log prices surged between 15 to 24 percent compared to the previous year, while pulpwood prices witnessed an even more remarkable ascent, climbing by 38 to 48 percent. This sudden surge in prices has been attributed to a strong demand for wood and a shortage of supply.
The Finnish Metsäteollisuus ry, a trade association for the forest industry in Finland, has been actively procuring timber from private forests. The member companies of the association have been fervently acquiring wood, and in the period spanning January to April, they acquired a total of 9.2 million cubic meters of wood. This is a 4 percent increase compared to the same period last year.
The increase in demand for wood has been driven by several factors. The construction industry, which is a major consumer of wood, has been experiencing a surge in demand due to low-interest rates and a growing population. Additionally, the COVID-19 pandemic has led to an increased demand for wood-based products, such as packaging materials, as more people are shopping online.
The shortage of supply has also contributed to the surge in prices. The unusually warm weather in the Nordic countries has led to a decrease in the growth rate of trees, resulting in a lower supply of wood. Furthermore, the restrictions on the import of wood from Russia, which is one of the largest suppliers of wood to Finland, have also contributed to the shortage.
The surge in prices has been welcomed by the forestry industry, which has been struggling with low prices for several years. The increase in prices has resulted in increased profits for forest owners and logging companies. However, some experts have warned that the surge in prices may not be sustainable in the long term.
The Finnish government has also taken notice of the surge in prices. The Ministry of Agriculture and Forestry has announced plans to increase the supply of wood by promoting the cultivation of new forests. The government has set a target of increasing the annual growth of forests by 25 percent by 2030. Additionally, the government has also announced plans to invest in research and development to increase the efficiency of the forest industry.
In conclusion, the forestry industry in Finland is experiencing a vibrant and dynamic season. The surge in prices has been attributed to a strong demand for wood and a shortage of supply. While the surge in prices has resulted in increased profits for forest owners and logging companies, some experts have warned that the surge may not be sustainable in the long term. The Finnish government has announced plans to increase the supply of wood by promoting the cultivation of new forests and investing in research and development.