Timber demand in Finland is expected to recover in 2027 despite omgoing challenges in the forest industry.
Timber demand in Finland is projected to bounce back in 2027, even as the forest industry is still grappling with ongoing challenges. According to the Natural Resources Institute Finland (Luke), an increase in harvesting activity and a modest rise in stumpage prices are expected. However, private forest owners are likely to experience a significant dip in income in 2026. These changes may also have Swedish forest companies that operate in similar export markets.
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Timber hauliers need to encourage young blood in, and also look after the hauliers we have, we need make the sector a safe and positive place to work.
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According to Finnish agricultural newspaper Maaseudun Tulevaisuus, timber trading has begun recovering following a weak summer.
Research institute Pellervo Economic Research (PTT) expects timber purchases from private forests to increase by 12 per cent in 2027, while industrial wood consumption rises by one per cent.
Forest Owners Face Lower Income
Luke estimates that Finnish private forest owners’ gross timber sales income will fall from more than EUR 3 billion to approximately EUR 2.7 billion in 2026.
Researcher Jussi Leppänen attributes the decline partly to falling prices and weaker timber sales.
Luke forecasts stumpage price increases of 3–4 per cent for pine and birch sawlogs and pulpwood in 2027. Spruce sawlog prices are expected to rise by two per cent and spruce pulpwood by one per cent.
However, PTT expects pulpwood prices to fall by 25 per cent during 2026, meaning next year’s recovery would start from a considerably lower level.
Packaging Board Shows Greater Resilience
Finland’s forest industry continues to face weak construction demand in Europe, higher energy costs, slower Chinese economic growth and international trade uncertainty.
PTT forecasts Finnish sawn timber exports to decline by one per cent in 2026 before recovering slightly in 2027.
Pulp export prices are expected to fall by ten per cent this year.
Packaging board performs better. Finnish board exports are forecast to increase by four per cent in 2026 and another two per cent in 2027, supported partly by Stora Enso’s new consumer board production line in Oulu.
Nevertheless, international competition continues to put pressure on prices.
For Sweden, Finland’s timber market provides an important indication of developments affecting Nordic pulp, paper, packaging and sawmill producers.
Meanwhile, Luke expects Finnish forest chip consumption to decline from approximately 8.5 million cubic metres in 2026 to eight million cubic metres in 2027.
Source: Luke and PTT
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