Finnish Roundwood Market in May

Finnish roundwood market in May: prices are rising and volumes are falling

    According to the Finnish Institute of Natural Resources (Luke), May 2026 was marked by paradoxical dynamics in the country's roundwood market: sawmill prices continued to rise slightly, while trade volumes remained at a record low. Despite the seasonal recovery, consumer activity was noticeably weaker than usual, which indicates the persistence of structural problems in the Finnish forestry sector.

Price dynamics: the ascent continues

    Contrary to the fears of some analysts, sawmill prices in Finland showed resilience in May. The average price for a spruce sawmill when sold at the root reached €86 per cubic meter, and for a pine sawmill — €84 per cubic meter, which is 1% higher than the April level.

    Year-on-year, the growth is even more noticeable: prices for pine and spruce increased by 9% and 7%, respectively. This puts current prices at a level not seen since 2007-2008, which indicates a continuing shortage of high-quality raw materials, despite the general downturn in the industry.

Trading activity: abnormal lull

    While prices are creeping up, roundwood trading volumes remain alarmingly low. Although activity increased by about half in May compared to April, the seasonal recovery was significantly weaker than usual.

Causes and consequences

    The current situation is the result of the coincidence of several negative factors that have been weighing on the Finnish forestry sector for several months.

1. - Cyclical decline in the industry: The Finnish forestry industry is experiencing a serious downturn. Lumber production fell by 20% in early 2026 due to weakening demand, especially in Europe and China. The slowdown in construction activity in Europe continues to put pressure on the market.
2. - Reduced demand for pulp: The pulp market remains weak, forcing producers to reduce production and postpone investments, which in turn reduces the need for balance wood.
3. - High costs: Rising energy prices and transportation costs increase financial pressure on sawmills, forcing them to be more cautious about purchasing raw materials.

    This picture in Finland contrasts with the situation in the markets of neighboring countries. For example, in Germany, high inventories and weak exports led to a significant decline in softwood lumber prices in the second quarter.   Oversupply combined with reduced demand from sawmills creates pressure on purchase prices.

Key indicators of the Finnish roundwood market (May 2026):

Forecast and conclusions

    At the moment, the Finnish roundwood market is showing an unusual pattern. On the one hand, high prices for saw blades remain, fueled by limited supply. On the other hand, low trading volumes and weak sawmill activity indicate that this price level may be unstable.

    Given the high cost of storage and the risks of quality loss, as well as the prospect of further lower prices for finished products, buyers will strive to minimize inventory. This may lead to a downward revision of prices in the second half of the year, unless demand for building materials and pulp unexpectedly begins to recover. The current situation requires producers and timber producers to be as flexible as possible in their procurement and pricing policies.

Tags: #Finland #market_circle_less #prices #trade volumes #forestry #Luke