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Södra announces price hikes

Demand for forest raw materials continues during the autumn. In order to meet the needs of both the timber market and Södra's industries, Södra is raising the prices of the energy range as of September 1, while the price level for sawn and pulpwood remains after August 31. Timber prices in Götaland thus remain at historical levels.

Södra's assessments for the autumn show a continued high demand for forest raw materials from family forestry. This mainly applies to the sawable assortment and the energy assortment, where the previous market premium for sawable is now added to the basic price, while a market premium is introduced for the energy assortment. In total, Södra implements price adjustments within five different product ranges.

- We see that there is still good demand for forest raw materials and we have stability in the needs of our industries. This price adjustment is a step in meeting that, which strengthens the profitability of the forest farm. At the same time, given the uncertainties that prevail in our surrounding world and the development of the economic situation, it is difficult to look into the future. The conclusion we draw from that is that we still need to have a high degree of flexibility and continue to work with adapted market premiums, says Peter Karlsson, business area manager for Södra Skog.

As of September 1, Södra will raise the basic price for timber, rough lumber and logs, while the temporary market premium for sawn timber, which is valid until August 31, will not be extended. In addition, a contracting premium for fuelwood and GROT is introduced and the existing market premium for coniferous and hardwood pulpwood is extended until the end of the year.

The following price adjustments are made and apply from September 1, 2023:

  • Normal spruce and pine timber, the basic price is increased by SEK 30/m³fub

  • The base price for rough timber and blocks is increased by SEK 30/m³fub

  • Market premium on softwood and hardwood pulpwood of SEK 30/m³fub is extended until December 31

  • Market premium for fuel wood of SEK 30/m3fub introduced until December 31

  • A market premium on GROT of SEK 10/m3s will be introduced until December 31

Please note that all of the above market premiums only apply to contracts written up to and including 31 December 2023.

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