Swedish storm damage also lowers timber price in Finland

Forestry companies redirect timber trade around Baltic Sea area

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Last weekend's storm destroyed more forest than previously estimated in Sweden and the Baltic States. In Southern Sweden alone in the course of a few hours some 70-80 million cubic metres of wood came down, equalling a year's felling by the forest industry.
      In Latvia and Estonia the storm downed six to seven million cubic metres of wood.
      Because of the storm the forest industry is now forced to rethink and rechannel the timber trade in the Baltic Sea area.
     
Owing to the sudden oversupply of wood, some of the Swedish logs and paper wood are to be shipped to Finland.
      When supply increases, the price of wood goes down even in Finland.
      In Sweden the price of timber has already fallen by around ten euros per cubic metre.
     
According to forestry director Antti Sahi of the Central Union of Agricultural Producers and Forest Owners (MTK), some of the wood from Russia and the Baltic States originally intended for the Swedish market will now land in Finland instead.
      "I don't suspect this will choke up the market, but it will have an effect on the balance between supply and demand", Sahi estimates.
      "Finnish forest owners are advised to step back and follow the development for a little while."
     
According to director Hannu Valtanen from the Finnish Forest Industries' Federation, the oversupply from Sweden and the Baltic States will actually help the forestry companies in the south of Finland.
      Owing to the mild winter and the lack of ground frost, the forests in Southern Finland have a hard time carrying the heavy felling and chopping machinery.
      "Importing timber may actually alleviate the possible damage to woodland nature in Finland", Valtanen says.
     
Senior Vice President Matti Karjula from Stora Enso explains that the storm increases the supply of coniferous timber in particular in the Baltic Sea area.
      Stora Enso owns sawmills in the Baltic States that have suffered from a lack of supply. Sawmill logs have been bought from Russia, but now some of those logs can be brought to Finland instead.
      "Hence the the storm will indirectly affect the Finnish sawn timber market as well."
      According to Karjula, Sweden has already asked Finland for help in harvesting the fallen trees. To prevent deterioration, the wood has to be collected before the summer.


Previously in HS International Edition:
  Finnish power line experts airlifted to Sweden to help clear storm damage (12.1.2005)
  Storm kills at least 14 and causes damage throughout Northern Europe (10.1.2005)

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