The forestry companies' deliveries to their Swedish customers were last year lower than they had been in two decades. And the first quarter of the year was even worse, with deliveries decreasing by a further 18 per cent.
However, despite decreased demand, the companies have been able to increase timber prices, writes Business World, citing a report from the industry organisation, the Forest Industries.
According to Christian Nielsen, an analyst at the Forest Industries, the development is expected given that the supply of forest products is decreasing in several parts of the world.
Historically, we have had the ability to increase our supply. Now we expect to maintain it. But the conditions are much better than in other forestry countries, such as Germany and Canada, he says to the newspaper.
The industry is also affected by the sanctions against Russia following the invasion of Ukraine.
Russia has accelerated the development, and now we are seeing the initial signs of a paradigm shift, says Christian Nielsen.
