Södra’s sawmills have low inventory levels after a challenging forestry year
The flow of sawlogs from Södra’s members’ forests has been slower than normal for the time of year. After a wet autumn, which makes it tricky for forestry operations, and the bark beetle which has necessitated pre-emptive final felling during the last few years, stocks at our sawmills are seasonally quite low.
With demand relatively weak, the result is a balanced supply/demand situation, but how is Södra ensuring that balance doesn’t tip over into shortage when demand picks up?
“Members are planting the forest and focusing on that. Final harvesting for them is a lower priority than management and thinning right now,” says Kim Gunnarsson, Wood Manager at Södra Skog. “We normally build up stocks in the autumn but despite log prices being at an attractive level for forest owners, the flow of logs has been slower than normal.”