The Swedish LPC is facing a crisis

#1 Oct. 19, 2025 17:34:44

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The Swedish LPC is facing a crisis

Swedish LPC is facing a crisis due to high costs and falling demand

The Swedish timber industry, one of the world leaders in the export of pulp, paper and lumber, is going through a difficult period. According to a report by the Swedish Forestry Industry Association, companies are facing a combination of record high costs, weak demand and growing uncertainty due to trade barriers at the start of 2025.

The key problems of the industry
The main challenges for the Swedish timber industry:

Domestic demand: The volume of lumber supplies to the Swedish construction market has fallen to the level of the crisis of the 1990s
Cost pressures: High raw material costs and strong Swedish krona reduce profitability, especially in sawmills
External risks: The introduction of increased duties poses a threat to exports, 5-10% of which are focused on the United States

IndicatorCurrent situation
Domestic demand for lumberThe level of the 1990s crisis
Share of exports to the USA5-10%
Share of pulp and paper exports90%

Expert opinion
"The unpredictability of trade policy puts a heavy burden on Swedish pulp and paper producers, who export 90% of their products," said Charlotte Dickens, an analyst at the association.

The context for the Russian LPC
Experiencing difficulties, European competitors, including Swedish companies, may begin to lose market share. This opens up additional opportunities for Russian timber exporters in key regions, especially in Asia, where demand remains stable.

Prospects for the Russian LPC
The difficulties of Swedish competitors create favorable conditions for:

• Increasing the share of Russian companies in the global market
• Expansion of exports to Asia
• Strengthening its position in the pulp and paper segment

Tags: #Sweden #LPC #crisis #export_less #competition #russia_lpc

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