Timber Sales Show Signs of Recovery in May

Finland, Jun 8, 2011 - The forest industry purchased 2 million cubic metres of timber from private forests in May. The volume more than doubled from April.

All timber grades are in demand, but there's a particular need for more sawlogs, which are needed to keep sawmills up and running.

Although timber sales have picked up in May, the aggregate volume of purchases in the early part of the year still lags almost one-third behind the longer-term average. The volume of purchases concluded in January-May 2011, 5.7 million cubic metres, was down 17% from the corresponding period of 2010.

The sawlog purchase volume was 2.1 million cubic metres, down a quarter from the corresponding period of the previous year. Procurements were down 42% compared to the five-year average. Livelier timber sales are especially important for sawmills; more timber is needed to keep them operational and customers supplied with sawn timber products.

The pulpwood purchase volume was 3.3 million cubic metres, down 13% from 2010 and about one-third from the five-year average.

Stumpage prices up

On average, stumpage prices were up 5-11% from May 2010. Compared to April 2011, stumpage prices increased 1-2%.

The average stumpage price of pine sawlogs was €55 per cubic metre and spruce sawlogs cost €57 per cubic metre. On average, birch sawlogs fetched €43 per cubic metre. The average stumpage price of pine and birch pulpwood was €16 per cubic metre, while spruce pulpwood fetched €19 per cubic metre on average.

Timber sales expected to pick up speed

All timber grades as well as standing sales and sales for delivery are in good demand at present, with sites that can be harvested in summer being particularly sought after. Sites harvested in summer are also an important source of business for harvesting entrepreneurs.