Finnish lumber production is shrinking

Finnish market research institute PTT prognosticates that for the time being, the Finnish lumber market won't see any improvements; cutting capacities in Finland are even expected to drop by 3 to 4%, according to the fall forecast. Several factors dampen the prospects: Domestic consumption is affected by weak construction activities, and the relatively strong euro weakens Finland's competitiveness as compared to Sweden or Russia. As most export markets are currently stocking oversupply, volumes and prices are decreasing. The prognosis however indicates that next year, lumber production will recover by 2 to 3%, while for export prices only marginal increases are predicted.

The pulp and board industries however are better off: Exports in these sectors move Finland's external trade balance for timber products to the plus side. The paper industry on the other hand will be shrinking 3 to 4% in 2015 and another 3 to 5% next year, following the market researchers' prognosis.