Finnish slowdown is here

The predicted slowdown in output in the Finnish wood products industry is uppon us because of falling demand for sawn goods and an excess supply of such goods in Europe in particular, according to TTJ, a timber industry magazine. The strength of the euro has also played a part.

The situation has been exacerbated by a shortage of roundwood largely caused by the reductions in imports from Russia due to the increases in Russian timber export duties, the report stated.

The Pellervo Economic Research Institute (PTT) forescast that the lowered demand for Finnish sawn goods, caused by the weakened economic situation, would continue at least until the third quarter of this year.

Fortunately, it is anticipated that the supply of sawn goods will not increase elsewhere in Europe this year, either. PTT says that this may result in a growing demand for European sawnwood in Asia and cause a new upswing in the Finnish sawmilling industry at the end of this year and early next year, TTJ reported.