Sweden's largest log and lumber producer raises prices

Sweden’s largest log and lumber producer raises prices

June 6, 2023

Image: Jörgen Henriksson, CEO of Vida Skog / Vida

Vida Skog announced the increase of the wood prices in Sweden. Despite a more challenging market situation for lumber products, Vida’s operation is standing strong thanks to efficient and well-invested sawmills and global sales channels, company said in a statement.

From 1 June, prices for the regular spruce and pine lumber will be increased by SEK 140 per m3fub ($12.8 per m3 of wood excluding bark) and the prices for logs by SEK 70 ($6.4) per m3fub. The price increases apply to Götaland region of Sweden.

"Right now timber prices are at a very high level. How the wood products market will look in the future is difficult to assess and depends on a variety of factors, such as the general economic situation and the global security situation. The sharp rise in interest rates has a negative impact on construction, and it is currently estimated that housing construction in Sweden will fall by around 50% this year compared to 2022. How consumption will look in autumn and winter is difficult to predict, but there are clear signs that there will be a further slowdown ”, says Jörgen Henriksson, CEO of Vida Skog.

Vida Group employs 1.5 thousand people in 23 production plants, including twelve sawmills. Production is mainly focused on structural timber for a number of global markets. Seventy-five percent of Vida’s sawn wood products are exported to Europe, USA, Australia, Africa and Asia. Sawn wood products are managed through our sales company Vida Wood.

In 2018, Canfor Corporation acquired 70% of the Vida while previous owners of Vida retained 30% in the company. In 2020, Vida AB acquired the Swedish sawmillbusiness of Bergs Timber. Vida’s sawmill has a capacity of 2.7 million m3 of lumber.