Timber Troubles: Finland Faces Looming Wood Shortage

Wood Prices Remain High in Finland, Raising Concerns for the Forest Industry and EU Regulations

Wood prices in Finland remain unexpectedly high, causing concerns for industry players who are also worried about the new EU regulation. The Finnish forest industry has been facing difficulties as wood prices have not shown signs of easing. Tapio Tilli, the portfolio manager of OP’s forest fund, explains that wood prices have not followed the usual downward trend in this economic cycle. Despite making initial wood purchases for the following year, prices still remain at an unexpectedly high level. Additionally, the import of wood from Russia ceased last year, further exacerbating the situation.

The high wood prices have surprised many in the industry, as typically, economic cycles lead to a decrease in prices. However, this has not been the case for the Finnish wood market. The persistently high prices have caused concerns for industry players who rely heavily on wood for their operations. The situation has become even more worrisome with the introduction of a new EU regulation that could potentially impact the industry further.

Tapio Tilli, the portfolio manager of OP’s forest fund, emphasizes the unusual nature of the current wood market. Despite the expectations of a downward price adjustment, wood prices have remained stubbornly high. This has led to challenges for industry players who have had to navigate through the difficult market conditions. Tilli reveals that the bank has already made wood purchases for the upcoming year, but the prices have not shown any signs of decreasing.

In addition to the high prices, the Finnish forest industry has also faced a setback due to the halt in wood imports from Russia. This cessation has further strained the supply of wood in the market, contributing to the high prices. The industry now faces the dual challenge of limited supply and high prices, making it difficult for businesses to operate efficiently.

The new EU regulation adds another layer of uncertainty for the Finnish forest industry. The details of the regulation are not yet clear, but industry players are worried about its potential impact. The regulation could potentially introduce new restrictions or requirements that could further affect the industry’s operations and profitability.

Despite these challenges, the Finnish forest industry remains resilient. Industry players are actively seeking solutions to mitigate the impact of high wood prices and navigate through the uncertain market conditions. The industry plays a crucial role in the Finnish economy, and it is hoped that the situation will improve in the near future.

In conclusion, wood prices in Finland have remained surprisingly high, causing concerns for industry players. The Finnish forest industry has faced challenges as wood prices have not followed the usual downward trend in this economic cycle. The halt in wood imports from Russia has further strained the supply, exacerbating the situation. Additionally, the introduction of a new EU regulation has added uncertainty to the industry’s future. Despite these challenges, industry players are actively working towards finding solutions and remain hopeful for a better future.

John O Mahony

John O Mahony

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