Page 8 - FDMAsia SepOct 2024

6 MARKET BEATS SEP/OCT 2024 FDM ASIA | www.fdmasia.com

kotangens Since the competition in the market
is extremely tight, Kadaru does not
foresee a big price increase: "Favourable
prices for timber and building materials

in general will continue as long as the
economies of Estonia, neighbouring
countries and major trading partners
continue to falter. When the Scandinavian
and German markets recover and
the building industry resumes normal
operations, this is bound to have an
impact on demand and prices for timber
and general construction materials in

general."
But Henrik Välja, CEO of the Estonian
Wood Industry Faces Many Challenges Forest and Wood Industries Association

(Eesti Metsa- ja Puidutööstuse Liit), is
Estonia's domestic wood By now, on the one hand, Scandinavian not so optimistic. He noted that the
companies faced with economic timber mills have reduced their production weak demand for lumber on the world
downturn and, on the other hand, local real estate market negatively impacts the Estonian

According to news.err.ee, the slight rise developments there are slowly melting wood industry.
in export prices to Finland and Sweden down. Demand and supply are now in Expensive raw materials and low
and the decrease in production are not balance and prices have returned to demand have led to a decrease in
expected to make a big difference to the normal market levels," said Kadaru, sawnwood production volumes in
Estonian lumber industry in the short adding that this is a positive development Scandinavia and Finland. Välja said
term, experts say. for Estonia's timber industries. this puts Estonia's industry in a difficult
Estonia's domestic wood companies "By now, Scandinavian and Estonian situation as this is important process
have struggled over the last couple of wood prices have equalised, and both for the sector.
years due to the economic downturn Puumarket and most Estonian retailers He said the lack of local raw materials

in Scandinavia, its biggest export prefer local production," said Kadaru. is caused, among other things, by the
market. Companies are still split on Although the decline in the construction spring nesting lull, which is why the
the industry's future. industry affects timber producers, he work of sawmills is stopped several
Raul Kadaru, purchasing director believes the worst is over for the sector. months a year.
of one wood retailer, said the price "Last year, many timber producers Välja said both the decrease in
of lumber exported from Finland and and processors took losses, but it seems sawnwood production volumes in
Sweden has increased by 10 percent, that orders are slowly recovering and Scandinavia and the lack of raw materials

which has increased the competitiveness some sawmills are running several shifts in Estonia reduce the opportunities for
of Estonian companies." again," the purchasing director said. companies that value wood to obtain