Wood products from Sweden are in high demand with limited supply

Demand for wood products remains high, but their supply is limited, as reported by Swedish Wood. Despite record production and manufacturing in March, Swedish sawmills currently have their lowest inventory levels in more than 20 years, which has put pressure on sawnwood prices.

“Demand is increasing, as are prices on world markets. The timber industry is used to dealing with large price fluctuations, but the current situation is unusual. On the other hand, if we consider the trend of wood prices over a longer period, the growth has been quite modest. We may be moving towards a situation where wood will achieve a fairer market value,” says Christian Nielsen, market analyst for industry organizations Swedish Wood and the Swedish Federation of Forest Industries.

Swedish sawmills have been able to maintain production during the pandemic. However, growing demand for wood products globally has led to a decrease in inventory at Swedish sawmills, leading to the lowest inventory levels in over 20 years. Production continues at full speed and March became the best production month ever for the Swedish sawmill industry.

The global shortage of wood products is mainly due to a decline in production in other parts of the world. Several manufacturers of wood products, which usually have high production, temporarily reduced their activity in 2020, resulting in a significant loss of revenue in the international market.

“The global shortage of wood products is an undeniable fact, but Swedish sawmills are still working as hard as they can to meet the existing demand. Their strength has been seen in largely maintaining deliveries during the critical months when the pandemic hit hard last year. I am convinced that our members are currently fully focused on delivering wood products to their customers,” says Mathias Fridholm, Managing Director of Swedish Wood.

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