Overview of Standing Sales Prices

In October, Finland's timber market presented a picture of stability with standing sales prices for softwood logs remaining unchanged from September levels. The average price for spruce logs reached just below EUR 82 per cubic meter, while pine logs stood at approximately EUR 79. Notably, these prices represent a substantial increase of 10% in real terms compared to last year's average. Birch logs experienced a slight rise of 1%, settling at EUR 66 per cubic meter.

Pulpwood Prices Surge

On the pulpwood front, prices maintained their peak levels from previous months, with the average cost of spruce pulpwood at near EUR 34. Meanwhile, birch and pine pulpwood fetched around EUR 32, which reflects a year-on-year increase of 23-25%. The delivery sales for pulpwood continued their upward trajectory, with average prices exceeding EUR 53 for spruce, EUR 52 for birch, and EUR 51 for pine per cubic meter. Remarkably, these figures indicate a 12-14% rise over last year, marking the highest levels in the monthly statistics since 1995, reminiscent of the pricing seen in the early 1990s.

Trade Volume Insights

October 2023 also witnessed a remarkable surge in Finnish roundwood trade, with volumes exceeding last year's figures by two-thirds. When juxtaposed against the average of the previous five years, this month recorded nearly a 50% increase. Only October 2018 saw higher trade volumes, indicating a robust market interest. Throughout the January to October period, cumulative trade volumes were up by 16% compared to 2022, with average purchase volumes exceeding the last five-year benchmarks by 21% for logs and 14% for pulpwood.

Implications for Wholesale Timber Buyers and Suppliers

The stability in standing sales prices alongside rising pulpwood delivery costs suggests a tightening supply situation, which could impact product availability and pricing strategies moving forward. Wholesale timber buyers should consider this dynamic as they strategize for procurement in the remaining months of the year. Additionally, suppliers should capitalize on the increased trade activity, exploring opportunities to optimize their inventories to meet heightened demand.

Conclusion

The Finnish timber market remains resilient, with favorable price dynamics and increased trading volumes suggesting a robust growth trajectory. As suppliers and buyers navigate through these changes, staying informed about market movements will be crucial for strategic planning and decision-making. With a solid demand for both standing and delivery sales, the outlook for the timber industry appears promising as we move towards the end of the year.