2021 was an unusually busy year in the wood markets – both volumes and prices peaked in the summer
In 2021, industrial roundwood trade increased by a little more than a quarter from the previous year. Log trade increased by two fifths, as sales volumes of pine and spruce logs were exceptionally high. In particular, the average prices of softwood logs increased during the first half of the year, until they started to decrease during the summer. In real terms, average full-year prices were 10 per cent higher in standing sales for logs and two per cent higher for pulpwood compared with the previous year.
The wood markets experienced a peak year in 2021, as the excellent demand and price levels for sawn goods and pulp in global markets increased the use and purchasing volumes of wood. In Finland, log consumption consists practically only of domestic logs, and the growing sawing volumes rapidly increased felling volumes and wood trade.
Standing sales prices of softwood logs increased most of all
According to the wood trade statistics of the Natural Resources Institute Finland (Luke), the average price paid for spruce logs purchased from non-industrial private forests in standing sales was EUR 66.1 per cubic metre and the average price paid for pine logs was EUR 62.0 per cubic metre in 2021. The average price was EUR 20.7 per cubic metre for spruce pulpwood, EUR 18.4 for pine pulpwood, and EUR 17.7 for birch pulpwood.
“In real terms, the standing sales price of spruce logs increased annually by nine per cent, and that of pine logs by ten per cent. For pulpwood, the increase ranged from two to three per cent. Measured in euros, the nominal average prices of softwood logs increased by roughly EUR 7, and those of pulpwood by a little less than EUR 1 per cubic metre”, says Jukka Torvelainen, senior statistician at Luke.
The average roadside price was EUR 31.7 per cubic metre for pine pulpwood, EUR 33.0 for spruce pulpwood and EUR 32.5 for birch pulpwood. The roadside price paid for pulpwood decreased by two per cent from the previous year in real terms.
Wood trade heated up in summer
During the spring and summer, demand for sawn softwood goods in particular rose, and the export volumes and prices of Finnish sawn goods increased rapidly. Wood trade was exceptionally busy. For example, the June wood trade volume was more than twice that of the previous five years. The prices of nearly all assortments increased throughout the first half of the year until they started to decrease in the summer. In standing sales, the volumes and prices of softwood logs increased more than those of other assortments.
Log trade increased by up to 42 per cent from the previous year, and pulpwood trade by 16 per cent
Last year, a total of 47.4 million cubic metres of industrial roundwood purchased from non-industrial private forests was recorded in Luke’s roundwood trade statistics, with the volume increasing by a little more than a quarter from the previous year. Log trade increased by 42 per cent, and pulpwood trade by 16 per cent.
“The volume of log purchases nearly reached the 2018 level, the previous peak year, and was unusually higher than that of pulpwood. Of all assortments, spruce log trade was the most active, with its volume accounting for a little more than a quarter of all wood trade. Pine pulpwood accounted for less than a quarter, and pine logs for a fifth”, Torvelainen says.
Over two thirds of standing sales came from regeneration felling
Forest industries purchase the majority of wood from non-industrial private forests by means of standing sales. In 2021, standing sales accounted for 88 per cent of the total wood trade volume, while delivery sales made up 12 per cent. Pulpwood is mainly procured by delivery sales, accounting for 16 per cent of all pulpwood but only seven per cent of logs.
Last year, up to 70 per cent of all roundwood purchased by means of standing sales came from stands that had reached the regeneration felling age. A total of 86 per cent of all logs and 53 per cent of pulpwood purchased by means of standing sales came from regeneration felling.
Energywood trade increased by a fifth, and prices went up
The cool first months of the year, the rising prices in emissions trading and the decreased use of peat as energy increased demand for forest chips in 2021. The growing activity in industrial roundwood trade also increased energywood trade, as harvesting operations also produce logging residues, and a single purchase can also be agreed to include energywood.
Energywood trade recorded in statistics increased by slightly more than a fifth from the previous year, with the volume of logging residues increasing by 38 per cent and that of pruned stems by 27 per cent. The total volume of purchased energywood exceeded the previous five-year average by a fifth.
The average price paid for energywood purchased as raw material for forest chips was EUR 4.8 per cubic metre in standing sales and EUR 24.9 per cubic metre in delivery sales. Compared with the previous five years, the average price increased by 14 per cent in standing sales and by two per cent in delivery sales in real terms.
“Pruned stems were the most valuable energywood species, accounting for more than half of total trade. The average price paid for pruned stems was EUR 5.1 per solid cubic metre in standing sales and EUR 27.3 per solid cubic metre in delivery sales”, Torvelainen says.
Logging residues covered more than two fifths of the total trade volume. Their average price was EUR 4.8 per cubic metre in standing sales and EUR 17.4 per cubic metre in delivery sales.
Background to the statistics:
- The prices presented in the statistics are based on data recorded in wood trade agreements between wood buyers and sellers, and they are obtained from wood buyers. Any other increments and services related to wood trade are not included in the statistics.
- Unit prices in wood trade are recorded in the statistical database at the fair prices valid each time. However, price changes are examined in the texts and graphs in real terms by eliminating the change in value using the cost-of-living index. Before February 2022, the wholesale price index was used in this calculation.
- The data is not expanded to correspond to all wood trade in non-industrial private forests. The published wood volumes represent roughly 90 per cent of all industrial roundwood and approximately half of all energywood purchased from non-industrial private forests.
Statistics
Volumes and prices in industrial roundwood tradeVolumes and prices in energywood trade
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