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Södra hikes timber prices

Södra raises the prices of pulp wood and fuel wood purchased from members.

There is still high demand for pulp wood and fuel wood. Demand is driven forward by a large need for paper pulp globally and a strained energy situation in Europe. This is expected to last both in the short term and throughout the winter. Therefore, Södra chooses to raise wood prices from October 7, by SEK 30 for pulpwood and SEK 50 for fuelwood respectively.

After the increase, the basic price for prime coniferous pulpwood is SEK 465 per solid cubic meter and prime birch and aspen pulpwood SEK 505.

- In recent times, the demand for the energy range has been much higher than normal and we see a continued need for coniferous and hardwood pulpwood in the industry. By raising the prices, we increase the flow to the industry from the family forestry in Götaland, says Olof Hansson, business area manager for Södra Skog.

Demand is expected to remain
The price increase is also to support Södra's 52,000 members' active forestry with a particular focus on thinning.

- We assess that the high demand for pulpwood will continue for a longer time, but are also aware that the turbulent environment creates volatile markets - both in Sweden and Europe. Therefore, we follow developments and recent market fluctuations very carefully in order to adapt our operations, says Olof Hansson.

The following price adjustments apply from 7 October 2022:

  • Softwood is increased by SEK 30/m³fub
  • Leaf pulp wood is increased by SEK 30/m³fub
  • Firewood is increased by SEK 50/m³fub and a market premium of SEK 50/m³fub is introduced for hardwood fuelwood, soft tree species.

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