5 Market Insights from the 22nd Wood from Finland Conference 2024
As a major player in the transport of sawn timber from Finland to Egypt, SOL of course sees the Wood from Finland Conference as a must-attend event. This year our CEO Tommy Kalin and Kent Tullock, General Manager SOL Breakbulk, attended the Conference to get the latest market news. Here are their key takeaways:
1. Land of Forest with a Sustainable Business Plan
Finland is the most forested country in Europe. More than 70% of the country’s land area is covered by forests. The annual growth of the forests is over 100 million cubic meters a year, and even if the forest is felled, the annual felling volumes are always 20 % less than the growth.
2. A Small Giant
There are more than 70 industrial sawmills in Finland, which produce about 11 million cubic meters of sawn timber for the world market every year which is a third of the wood harvested from forests (the rest is used by the pulp and paper industry). Although the amount is only 3% of the world’s sawn timber production, Finland is still the world’s fourth-largest coniferous timber exporter.
3. Sawn Softwood to Egypt - a key market
The largest export country for Finnish softwood is Egypt which accounts for about 14% of the export volume. The second export country is China (10% and the third is UK (9%).
4. Egypt is “Under Construction”…
The underlying demand in Egypt for sawn softwood in Egypt is strong due to a growth in the construction/housing market that grew by 6,8% in 2023 and is expected to have an annual growth of 7,4% until 2027. Egypt plans to build 14 more cities, including a new Administrative Capital, for $14 Bn to solve housing issues.
5. …but challenged by inflation
Inflation at 29% y-o-y, plans to achieve 10% during 2025. Today wood is used as a hedge against inflation by traders which makes the sellers reluctant to sell the wood to end-consumers.
“Timber shipments to Egypt are a core business for SOL and we’ll continue to regard both Finland and Egypt as strategic key markets for SOL’s future breakbulk business. There is still a strong growth potential for SOL, although the financial and political situation in Egypt - but also globally – might have a negative effect in the short run. Despite this, SOL does business with a long-term view and we look forward to developing our partnerships in both countries”, says Tommy Kalin and Kent Tullock.
About Wood from Finland Conference
Wood from Finland Conference is one of the most respected softwood conferences globally and is arranged by the Finnish Sawmills Association. Every year the event gathers over 500 softwood professionals to Helsinki from more than 30 different countries. The Conference offers a comprehensive program that gives detailed market insights from the main softwood markets globally. Market outlook consists of information about local consumption, economic situation, trends and facts about the timber market in key export markets. There are also multiple opportunities for networking with customers and partners. More about the conference: https://wffchelsinki.fi/
Photos: Wood from Finland Conference
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