Finnish log purchases remain sluggish

Finnish forest industry log purchases from private forests during the first half of 2009 were only a third of the level of a year ago, according to the Finnish Forest Industries Federation (FFIF).

But FFIF said demand was now picking up and advised sellers to take rapid action in order to benefit from this year’s 50% tax break on revenue from timber sales.

Purchases during the six month period fell by 61% for pine logs, 58% for spruce logs and 74% for birch.

Total timber purchased in June was 360,000m³, about the same as May.

Pine log stumpage prices increased by 4% in June and by 2% for spruce.

FFIF said demand for sawn timber remained weak while mills were still suffering log shortages because of the low level of log sales.

“Getting timber onto the market at a competitive price is now of crucial significance to safeguard the continued operation of Finnish sawmills,” it said.