NEWS

(10/16/2020 / sbr)

PTT: Paperboard replaces paper as most important export product of the Finnish Forest Industry

Global production and consumption began to recover in the summer, but in Europe and North America, the recovery has been weaker than in China. The strong recovery of general demand and demand for forest products requires that a vaccine becomes available. Demand for graphic papers will decrease sharply this year, and with that exports.

Albeit the chemical forest industry is supported by the increased demand for paperboard and tissue. The focus of exports is shifting from printing and writing papers to paperboard, due to this the Finnish paper and paperboard exports will gradually adapt to better meet the global demand.

Demand for sawnwood has recovered since the beginning of the year, but this year exports will decrease sharply from the previous year. Exports of sawnwood are limited by the uncertainty associated with the coronavirus, the increased supply of sawnwood in Europe due to the sawing of damaged wood, and the low price of crude oil. The decrease in wood use and the increase in wood imports have slowed down the harvesting of wood in Finland. Timber trade and harvesting volumes will rise next year if forest industry exports recover. Changes in wood prices are smaller than changes in volume, so this year's slight decline will be followed by a slight increase next year. Gross stumpage earnings of private forest owners vary more sharply due to the combined effect of logging and prices.

The full PTT forestry forecast can be found here.