Pine Logs Near €80 Per Cubic Meter as Demand Holds Firm

The timber market in Finland is experiencing notable shifts as 2024 draws to a close, with pine log prices climbing to an average of €79.96 per cubic meter, according to the Finnish Forest Industries Federation (Metsäteollisuus ry). This upward trend places pine logs just shy of the €80 mark, reflecting solid demand despite the typical seasonal slowdown in the timber trade.

Spruce and birch logs have also shown commendable performance, with average prices reaching €82.46 per cubic meter and €64.77 per cubic meter, respectively. The overall increase in sawlog prices highlights sustained resilience in a year where market dynamics have been anything but stable.

Timber Trade Slows as Holiday Season Approaches

As Christmas approaches, the Finnish timber trade is witnessing a predictable seasonal dip. Last week, member companies of Metsäteollisuus ry reported purchases of 822,000 cubic meters, indicating a week-over-week decrease of nearly 100,000 cubic meters. Despite this decrease, year-over-year comparisons reveal a significant strength in the market: last week’s purchases exceeded the same period in 2022 by approximately 270,000 cubic meters.

Overall, members of Metsäteollisuus ry—who represent about 80% of timber purchases in Finland—have contributed to a booming 2024. Total industry-wide timber purchases have already exceeded 45.6 million cubic meters this year. This figure represents an increase of over five million cubic meters compared to the same time last year, signaling healthy growth in the sector over the broader timeframe.

Pulpwood Prices See Diverging Trends

While sawlogs are commanding higher prices, pulpwood has exhibited more mixed price trends. The average price of spruce pulpwood saw a decline to €33.23 per cubic meter, while birch pulpwood fell to €32.02 per cubic meter. In contrast, pine pulpwood displayed slight resilience, increasing marginally to €31.48 per cubic meter.

The diverging behavior between sawlogs and pulpwood highlights the evolving demand patterns within the Finnish timber industry. Pulpwood markets appear to be under pressure, potentially due to oversupply or weakening downstream demand in related industries such as paper and packaging.

A Strong Year for Finland’s Timber Industry

Despite the slowdown in December, the Finnish timber industry has had a remarkable year overall, driven by higher-than-average purchases and price growth in key log categories. These trends underline the sector's resilience and adaptability in the face of changing global economic conditions.

As the market prepares for the holiday lull, it remains to be seen how pricing and demand will evolve heading into 2024. For Finnish timber professionals, the ability to navigate these seasonal and market-specific fluctuations will be key to sustaining the industry’s upward trajectory.