world news - 14.11.2008
Light and darkness for the Swedish forest industry
Intermediate annual reports for the first nine months of the year are
mostly sad reading. The sawmill industry is in the worst situation.
Sweden's biggest wood industry company Setra says in its report that in
its opinion the recession in the building sector, which is mainly
caused by the financial crisis, will continue its downward trend.
During coming quarters financial results and low profit margins will be
predominant in the entire branch.
The company Södra has a somewhat broader product assortment and is less
pessimistic. There is excess timber supply in the company's timber
acquisition area, equilibrium between supply and demand of pulpwood and
some excess supply of deciduous pulpwood.
Mr Leif Brodén, group manager of Södra, says that because of the
recession in the sawmill sector there are weaker prospects in the saw
wood market. However, he believes that there will be a shortage of
pulpwood next year. In the long term there will also be a shortage of
timber for the sawmills when the excess timber stocks generated by the
storms Gudrun and Per are exhausted. On the other hand, there is still
a vigorous market for energy wood.
The State owned forest company Sveaskog, which sells round timber to
forest companies, is most optimistic. In its intermediate annual report
the company says that there is ongoing recession in the wood market,
but there are signs that the downward trend is weakening. For raw
material producers there is an upward trend in the market for bio-fuel
related energy production, which will result in floor prices also for
pulpwood.
See also:
- — Russia takes step with wood to meet the EU halfway
- — New carbon standard set for forestry trading
- — Timber export tariffs held off as Prime Minister Putin visits Finland
- — Wood construction strengthens its position after recession
- — Forestry revenues plunge in British Columbia, Canada
