world news - 09.11.2007
Is the party over for Swedish sawmills?
After a strong period for Swedish sawmills there are signs of a
slowdown. Sales have started to decrease after a year of record demand
and correspondingly the stocks on sawmills are increasing.
During the last years customers have made excessive purchases for fear
of not getting enough timber. That resulted in an unprecedented demand,
but now stocks are full and purchases have been reduced. The year 2008
will be less profitable than the preceding years. One reason is the
decreasing volume of construction in the US. As a substitute sawmills
have concentrated on the European and Japanese markets.
Ms Marie S. Arwidson, Managing Director of the Swedish Forest
Industries Federation, confirms that sawmills are facing a market
slowdown. — Sawmills had a very good and profitable 12 month period and
the business cycle was the best since 1973. However, now we confront a
temporary stagnation, which mainly affects sellers of low quality
spruce. The reason is the big amount of storm felled timber on the
European market.
See also:
- — Canada:Strong dollar has negative impact on value of wood products
- — World’s oldest trees grow in California
- — Continued price increases for Swedish forest land
- — Revolution looming in lumber industry
- — Experts look to timber as next generation energy source
