Finnish forest industry faces declining export values

The Finnish forest industry faces a challenging year with a projected two percent decrease in export value, according to a forecast by Pellervon taloustutkimus PTT. Economic economist Matti Valonen notes that the decline is driven by various factors, including rising transport costs, overcapacity in several products, and geopolitical tensions such as the conflict in Iran affecting sawn timber markets. While pulp export values are expected to drop, cardboard and plywood exports are projected to rise.

In the timber market, a period of relative quiet is expected to end as standing timber stocks deplete. Economist Olli Korhonen indicates that while wood prices have fallen significantly from previous peaks, the depletion of inventories will likely drive a slight increase in wood trades toward the end of the year. A more substantial increase in trade volume is anticipated next year, with a projected rise of over ten percent.

Overall wood consumption is expected to remain stable this year, with a slight increase of approximately one percent forecasted for next year. Although harvesting volumes decreased in the first half of the year due to lower activity in private forests, activity is expected to pick up as the year progresses.