Analysts from the Finnish Institute of Natural Resources (Luke) stated that in the first eight months of 2023, the import and export scale of Finnish timber and forest products decreased compared to the same period last year.

From January to August 2023, the total import volume of Finnish timber was 3.422 million cubic meters, a decrease of 2% compared to the same period in 2022. The total import volume of timber in August was 280000 cubic meters, a decrease of 39% compared to the average monthly import volume in 2022. Among them, 47% are pulp wood, along with 29% wood chips, 12% fuelwood, 10% wood processing residues, and 2% logs.

In August 2023 the exports value of forest industry products totalled EUR 0.96 billion which was in real terms 18% smaller the average monthly export value in 2022. The volume of wood imports ended up at 0.28 million cubic metres.

Wood imports
Just under half of the wood imported in August was pulpwood and 29% chips. Fuelwood accounted for 12% and by-products wood for 10%. The share of logs remained at 2%.

Import prices of logs and pulpwood in August were lower in real terms than the previous year's average, except for pine pulpwood (64 EUR/m³, +3% of the previous year's average price) (deflated using wholesale price index: 1949=100). The price of spruce pulpwood was EUR 58 per cubic metre almost a tenth lower than in the previous year. The price of birch pulpwood was only one euro more, almost a fifth lower than in the previous year. The import price of chips was EUR 74 per cubic metre, up 4% on the previous year.

From January to August 2023, the total export value of Finnish forest products reached 8.11 billion euros, a decrease of 13% compared to the same period last year. One quarter of the export value is wood processing products, while the rest is pulp and paper products.

Exports of the forest industries
The exports value of forest industry products was EUR 8.11 billion in January-August, 13% less in real terms than in the corresponding period of the previous year. One quarter of the export value consisted of products from the wood-products industries and the rest from the pulp and paper industries.

In August 2023, the export price of sawn goods was EUR 208 per cubic metre, 30% lower in real terms than the average price of the previous year. The price of plywood was EUR 839 per cubic metre, 15% higher in real terms than the average of the previous year.
The export price of bleached sulphate pulp in August was 27% lower in real terms than the average of the previous year, at EUR 527 per tonne.

The export price for fine paper was EUR 1 117 per tonne and for paperboard EUR 922 per tonne. Both export prices were 4% lower in real terms than in the previous year. The export price of magazine paper fell by only 1% in real terms compared to the average of the previous year, to EUR 823 per tonne.

The global economic recovery is slowing down, and the construction industry is facing uncertainties such as high inflation, high interest rates, and industry downturn. The demand for forest products in major markets has significantly weakened, and various factors have combined to lead to a decline in the import and export scale of Finnish timber.

Source:  Luke