The price of roundwood in Estonia has experienced a considerable decrease, which is seen as positive news for the country’s wood industry. However, it is worth noting that prices in Estonia still remain higher compared to neighboring countries. This has resulted in the opening of new sawmills in Scandinavia, while Estonian sawmills are being forced to shut down, leading to a loss in market share.
A recent timber market overview for the third quarter highlights the ongoing impact of the recession and the contracting construction market in Estonia. Specifically, the prices of pine logs have dropped by 30 percent, while spruce prices have decreased by approximately 20 percent compared to the previous year.
Henrik Välja, the executive manager of the Estonian Forest and Wood Industries Association, expressed his views on the situation. He acknowledged the positive effect of lower roundwood prices on the industry, but also emphasized the need for further analysis and evaluation of the market conditions.
Välja stated that while the decrease in roundwood prices is beneficial for the Estonian wood industry, it is crucial to address the issue of higher prices compared to neighboring countries. This disparity has resulted in the closure of Estonian sawmills and a subsequent loss of market share.
The opening of new sawmills in Scandinavia is a clear indication of the challenges faced by the Estonian wood industry. It is important for industry stakeholders to closely monitor and adapt to these changing market dynamics in order to remain competitive.
The recession and contracting construction market in Estonia have played a significant role in the current situation. These factors have contributed to the decrease in demand for roundwood, which in turn has led to the reduction in prices.
Välja emphasized the need for a comprehensive analysis of the market conditions and the development of strategies to address the challenges faced by the industry. This includes exploring opportunities for collaboration and innovation within the sector.
In conclusion, while the decrease in roundwood prices is positive news for the Estonian wood industry, it is important to address the issue of higher prices compared to neighboring countries. The closure of Estonian sawmills and the loss of market share to Scandinavian counterparts highlight the need for industry stakeholders to adapt to changing market dynamics. By closely monitoring the market and developing innovative strategies, the Estonian wood industry can overcome these challenges and remain competitive in the global market.