Swedish sawmiller Holmen has reported continuing low demand for wood products in Q4, 2024, but prices were stable.

The company, which runs five sawmills, curtailed timber production in 2024 due to the weak market and its timber deliveries decreased to 1,348,000m3 (2023: 1,498,000m3) for the full year.

Holmen’s wood products division saw its operating profit for 2024 reduce to SEK 2m (2023: SEK 6m). Lower deliveries and increased log costs were offset by higher selling prices and increased revenue from sales of wood chips and biofuel.

Compared with the third quarter, operating profit for the fourth quarter decreased from SEK 0m to SEK -18m, as a result of increasing log costs in southern Sweden.

A rebuilding shutdown at Iggesund Sawmill will take place in the first quarter of 2025 and is expected to have a negative impact on earnings of SEK 30m.

Holmen CEO Henrik Sjölund said interest in building with wood remains high, but demand is currently low due to the weakness of the construction sector.

“Prices have nevertheless increased by 10% over the past year due to global shortages of raw materials,” he said.

“In the fourth quarter, wood product prices were stable but increasing cost for logs, particularly in southern Sweden, led to a negative result for Wood Products in the fourth quarter of SEK -18m. We are in a strong position for when the construction cycle turns, with well-invested sawmills and an expanded processing capacity.”

Group-wide, operating profit for 2024 was SEK 3.721bn (2023: SEK 4.755bn).

Source: ttjonline.com