Mellanskog Implements Significant Price Hikes for Logs

The Central Sweden Forest Owners' Association, Mellanskog, has announced a substantial increase in roadside prices for logs, raising rates by 100 SEK (approximately 10 EUR) per cubic meter. This move is aimed at capitalizing on the strong demand for logs and enhancing the profitability of its forest-owner members. The price adjustments apply to both pine and spruce logs, alongside additional payouts for logs harvested during the thawed ground period.

In a statement, Mellanskog’s CEO, Fredrik Munter, elaborated on the market conditions driving the price hikes: “We see the log markets continuing to perform well. Both Setra and other sawmill companies in Central Sweden have increased their production through investments, and the demand for logs continues. With these price increases, we create added value for our owners by improving the profitability of forest ownership.”

Elevated Pricing Across All Log Categories

Following the adjustment, roadside prices reflect notable increases, particularly in the Mälaren Valley region. Prices for pine logs will now range from 735 SEK (64 EUR) to 1,175 SEK (102 EUR) per cubic meter, depending on quality and diameter. Similarly, spruce log prices are now set between 735 SEK (64 EUR) and 1,110 SEK (97 EUR) per cubic meter. For forest owners, this represents an opportunity to see higher returns on their harvests, provided quality metrics are met.

Mellanskog also announced a supplementary payment of 50 SEK per cubic meter for log stands harvested during thawed ground conditions. This initiative supports year-round logging operations and incentivizes timber availability even during more challenging environmental conditions.

Impacts on Pulpwood and Energy Wood Markets

The price adjustments extend beyond logs. Mellanskog is set to offer 600 SEK (52 EUR) per cubic meter for softwood pulpwood and 630 SEK (55 EUR) for birch pulpwood. Payment for energy wood stands at 490 SEK (43 EUR) per cubic meter, showcasing the association's emphasis on creating competitive pricing across all timber categories.

These changes further underline Mellanskog’s commitment to maximizing returns for forest owners by responding to market trends and strengthening profitability across various timber market segments.

Demand-Driven Market Growth

Mellanskog’s price adjustments come amidst clear signs of robust market demand. Investment in sawmill production by companies like Setra—a key entity in the Central Swedish market—has bolstered demand for quality logs. Setra’s ownership is poised to be fully transferred to Mellanskog in the first half of next year, positioning Mellanskog for even greater influence in the regional timber industry.

The high demand for timber is not unique to Mellanskog’s areas of operation. Forest owners in nearby West Värmland and Dalsland municipalities recently saw similar price increases for spruce and pine logs, with rates rising by 70–100 SEK (6–9 EUR) and 70–75 SEK (6–7 EUR), respectively. These consistent pricing trends suggest a broader upsurge in log market performance across Sweden.

What This Means for Forest Owners

For forest owners in Central Sweden, the latest round of price hikes represents a growing opportunity to capitalize on a favorable market. Strategic adjustments, like those introduced by Mellanskog, align forest owner incentives with rising demand for logs and processed timber products. By catering to current market conditions, Mellanskog is effectively supporting sustainable growth and profitability for its members.

As market conditions evolve, the wood and timber industry in Central Sweden appears poised for continued growth, driven by strong demand and proactive measures by forest owner associations such as Mellanskog.