Finnish Pulp Output to Decline this Year

Finnish pulp and paper production will decrease this year, while export prices for paper and paperboard will remain flat, according to a report by the Finnish forest research institute METLA. Demand for many forest industry products will remain weak this year in Finland's most important export areas in the European Union, according to METLA.

The Euro area economy is expected to show a zero growth rate this year, at best, METLA continues, Globally, economic growth is also expected to remain slow. As a result, METLA forecasts Finnish paper production and exports to drop by 8% to 7.9 million tons and 7.3 million tons, respectively, this year from last year's levels.

Paperboard demand, however, has remained reasonable despite the recession, METLA adds. It expects Finnish production and exports of paperboard to edge down by only 1% to 2.7 million metric tons and 2.5 million metric tons, respectively, this year. On the price side, METLA forecasts stability for both paper and paperboard prices this year, after increases of 6% and 7%, respectively, in 2011.

TAPPI
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