Sveaskog Reduces Timber Prices in Sweden

The Swedish state-owned forestry company Sveaskog is reducing timber prices, citing increasing global competition and challenging market conditions in the sawmill and pulp production sectors. The company explains that price adjustments are necessary to respond to profitability pressures faced by customers and weak demand in certain segments.

Developments in Sweden reflect broader trends in the European and global timber markets, where price fluctuations are influenced by economic conditions, construction activity, and geopolitical factors, including potential trade tariffs.

Price reductions vary by region and product type. In Southern and Central Sweden, the price of pine sawlogs has been reduced by 130 Swedish kronor per cubic meter, while spruce sawlog prices remain unchanged. In Northern Sweden, pine sawlog prices have been cut by 50 kronor, and spruce by 25 kronor per cubic meter.

Pulpwood prices have been reduced nationwide: softwood pulpwood by 40 kronor per cubic meter, and hardwood by 90 kronor. The company states that the goal is to adapt to the market situation while maintaining long-term, sustainable relationships with customers during a time when end-product prices and demand are unstable, yet costs remain high.

These changes indirectly affect Latvia’s timber industry as well, where price pressure intensifies through export competition and demand fluctuations. Latvian companies active in export markets face a growing need to flexibly adjust production volumes, sales structures, and product portfolios.

Additional uncertainty arises from potential U.S. tariffs, which could impact the competitiveness of Latvian producers in products such as OSB panels, softwood lumber, and birch plywood. The industry will likely need to seek new markets or increase the share of value-added products to mitigate the impact of price cycles.

Sveaskog is Sweden’s largest forest owner, managing approximately 14% of the country’s forest area. The company’s forests are certified according to FSC and PEFC standards, and it engages in the trade of roundwood, pulpwood, and bioenergy, as well as land and forest development projects.

Price adjustments in Sweden reinforce the signal of growing competition and instability in the timber market. Future price dynamics will largely depend on construction demand, tariff decisions, and companies’ ability to adapt to changing international trade conditions.