A functioning timber market is a prerequisite for a dynamic forest industry. Competitive raw material pricing and a stable operating environment enable the industry to compete in global markets and strengthen conditions for investment in Finland.

Metsäteollisuus companies purchased 21.4 million cubic metres of timber from private forests between January and July 2023. This is 12% more than the average for the last five years.

Between January and July, 10.7 million cubic metres of pulpwood and 9.8 million cubic metres of logs were purchased. Compared to the five-year average, the purchase volumes for pulpwood and roundwood were 10% and 15% higher respectively.

Raw wood costs at a high level

In July, stumpage prices were higher than a year ago. Compared to July last year, prices for standing logs were 1-12% higher, while pulpwood prices were 23-41% higher than a year ago.

In July, the average price paid for pine logs was 71 €/m³. Prices ranged from 47 to 77 €/m³ (depending on the region and the specific logging site). The average price for spruce logs was 74 €/m³, ranging from 46 to 77 €/m³. The average price for birch logs was 55 €/m³ – from 36 to 61 €/m³. The average standing price for pulpwood was 26-28 €/m³; from 17 to 31 €/m³.

There are several reasons for the differences in stumpage prices. Price levels are influenced by factors such as the total volume of timber harvested, timber quality, stem size, harvesting method, distance to the forest and transportation distance, terrain, and the timing and conditions of harvesting. As a result, the price of timber can vary significantly even between adjacent forest areas.

Continuous access to raw materials is a fundamental requirement for the forest industry.

The forest industry requires a constant and predictable flow of raw materials to mills and sawmills. The availability of wood is the main prerequisite for the operation of timber processing plants. The forest industry provides Finnish forest owners with 2-3 billion euros in annual revenue from timber sales.

“A forest provides the best return for its owner when managed and regenerated in a planned manner. In recent years, large volumes have accumulated in forests due to delays in thinning operations. This problem should be addressed as quickly as possible. This will ensure future wood growth and a continuous supply of wood,” said Karoliina Niemi, Forestry Director at Metsäteollisuus , regarding the situation.