Timber prices in Finland have continued their downward trend in September, with both spruce and pine log prices falling by 4%. Pulpwood prices have also experienced a similar decline. Interestingly, birch log prices have remained stable during this period. This decline in timber prices is part of a larger trend, as the volume of timber trade has been approximately one-third lower since June compared to the previous year.
Despite the recent decline, the timber industry had a robust start to the year, resulting in higher overall timber trade volume for January to September compared to preceding years. This indicates that the industry has faced challenges in recent months, but still managed to perform well during the earlier part of the year.
The average price for spruce logs in standing sales has decreased by 4% in September. This decline can be attributed to various factors, including a slowdown in construction activity and a decrease in demand from the wood processing industry. The COVID-19 pandemic has also had an impact on the timber market, with disruptions to supply chains and reduced global demand for timber products.
The decline in timber prices has affected both domestic and international markets. Finnish timber exporters have faced challenges due to reduced demand from key markets such as China and the United Kingdom. The closure of construction sites and the decrease in housing construction activity have further contributed to the decline in timber prices.
In addition to the decrease in demand, the timber industry has also been impacted by an increase in supply. The summer months typically see a decrease in logging activity, but this year, due to the mild weather conditions, logging continued at a higher rate. This has led to an oversupply of timber in the market, further driving down prices.
Despite the challenges faced by the timber industry, there are some positive signs for the future. The Finnish government has implemented measures to support the industry, including subsidies for forest owners and investments in research and development. These initiatives aim to promote sustainable forestry practices and increase the competitiveness of the Finnish timber sector.
Furthermore, there are expectations of a potential rebound in demand as the global economy recovers from the effects of the pandemic. The construction industry, which is a major consumer of timber products, is expected to pick up pace in the coming months. This could lead to an increase in demand for timber and a stabilization of prices.
In conclusion, timber prices in Finland have experienced a decline in September, with spruce and pine log prices falling by 4%. This is part of a larger trend, as the volume of timber trade has been lower since June compared to the previous year. However, the industry had a strong start to the year, resulting in higher overall timber trade volume for January to September. The decline in prices can be attributed to various factors, including a slowdown in construction activity and reduced demand from the wood processing industry. Despite the challenges, the government has implemented measures to support the industry, and there are expectations of a potential rebound in demand in the future.