Trade of energywood, 3rd quarter 2023

Energywood prices continued to rise in the third quarter of the year. The average price of pruned stems rose to a new record high and came close to pulpwood prices. In standing sales, the average price of pruned stems was about a fifth lower than the average price of pulpwood and delivery price rose at the same level as pulpwood.

In January-September, two fifths more energywood was purchased than the average for the previous five years. The rise is explained by an increase in the volumes of logging residues and unpruned stems, while the trade in pruned stems decreased slightly.

Prices

• In the third quarter of the year, two fifths of the trade in energywood was pruned stems. In standing sales, the average price of pruned stems rose by 23% in real terms from the previous quarter to EUR 21.4. This was 2.4 times the price of the whole of last year. In delivery sales, the price rose by 17% to EUR 48.0. It was 42% above the average price of last year.
• Energywood prices have risen exceptionally fast and have come close to the price of pulpwood. In 2021, the average price of pruned stems in standing sales across the country was less than a third of the average price of pulpwood. At the end of 2022, the real prices of these assortments started to rise and converge. In the third quarter of 2023, pulpwood became slightly cheaper, and the average price of pruned stems reached around 80% of the average price of pulpwood.
• In delivery sales, prices of pruned stems and pulpwood have been closer to each other, and the price difference narrowed more slowly. However, in the third quarter of 2023, the average price of pruned stems increased more than that of pulpwood and their average prices ended up at the same level.
• Nearly half of the total trade in energywood was in the form of logging residues. In standing sales, the average price paid for logging residues was EUR 7.4 per cubic metre. Compared to the previous quarter, the price fell by 8%, but was 42% higher than the average price for the whole of last year. In delivery sales, the price of logging residues was up 13% on the previous quarter to EUR 27.7.

Trade volumes

• A total of 1.0 million cubic metres of energywood trade was recorded in the statistics in the third quarter of the year. The volume decreased by 10% year-on-year but exceeded the average of the previous five years by almost a third.
• In January-September, trade was one-third up on a year ago and two-fifths up on the previous five years. Compared to the previous five years, trade in logging residues and unpruned stems almost doubled and trade in pruned stems fell by just under a tenth.

Background information on the statistics

Unit prices in roundwood 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 (1951:10=100). In the third quarter of 2023, the annual increase in consumer prices was around six per cent. 

The recorded prices are based on prices entered in wood trade agreements between the buyers and sellers. Any other increments and services related to wood trade are not included in the statistics. The prices do not include government subsidies. 

The information is not rounded up to correspond to the total non-industrial private wood trade in Finland. This means that the published wood volumes represent only just over half of the energywood purchased from non-industrial private forests.