Finnish Paper Production Continues to Decline, Exports Rise

Paper production in Finland is expected to decline this year 3% to 4% below last year’s figure, according to a Lesprom Network report based on data provided by Pellervo Economic Research Institute (PTT), Finland. Despite economic growth, the production will decrease further in 2014 as well. The reduction is driven by structural change in demand.

The Finnish export of paperboard is expected to grow close to 7% from last year. The export will grow further next year, PTT noted.

Contrary to previous years, the average export price of Finnish paper will decline this year. PTT estimates prices to rise again next year, which, however, calls for cost cuts and reduction of supply in Europe. Paper machine closures are possible in Finland as well.

The price of pulp has remained high for several years, PTT notes. This year, it points out, the Finnish exports of pulp are forecasted to grow close to 10% from last year. In addition to strong export demand, the decreased domestic need for pulp in Finland due to reduced paper industry activities underlies the growth in export.

PTT estimates that Finnish pulp exports will grow slightly next year. The average export price of pulp will rise this year and remain rather high next year as well.

TAPPI
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