In Finland, wood trade has been at a normal level this year. Wood prices are still historically very high, despite the slight decline during the autumn. It is very challenging to achieve profitable operations in the market at the current end product and wood prices.
The ramp-up of the Kemi bioproduct mill has progressed on target this autumn. We will purchase greater volumes of wood to account for the increasing needs in Kemi in particular. Across Finland, the demand for wood mainly focuses on thinning sites, birch logs and roundwood from delivery sales. We are purchasing regeneration felling sites as normal. In energy wood, demand focuses on crown wood and small-sized trees.
The Baltic wood market is again characterised by oversupply, and the roadside price level of overbark pulpwood has fallen clearly below Finnish prices during the autumn. In Sweden, demand for logs and pulpwood continues to be very strong. Harvesting conditions have been excellent this autumn. Forest service sales have been at a record high, and demand is projected to remain strong.
Our customer feedback from forest owners has broken a new record this year. The popularity of the Metsä Group Plus management model has continued to be strong, and since September, an additional bonus has also been paid for felling aiming for continuous cover regeneration of lush peatlands.
In September, we announced we were reviewing the sunlit slopes of our owner-members’ forests and intensifying guidance for their management. Sunlit slopes are important for biodiversity.
In October, we announced we were further improving our contract customers’ benefits by revising the wood trade price guarantee method to make it more rewarding and transparent. In the new model, contract customers can monitor the monthly price development related to their trade in Metsäverkko in the form of an index.
In November, we announced we were paying a bonus of at least one euro per cubic metre for all wood trade carried out with our current and new owner-members between 1 November 2024 and 28 February 2025. The campaign is a way for us to encourage forest owners to join Metsä Group as owner-members and to boost good forest management and winter wood trade.
I am very pleased that our inspections of thinning indicate better results than the national estimate released by the Finnish Forest Centre in August 2024. The work carried out by our contract entrepreneurs is of high quality.
The public debate on forestry operations’ compliance with the law and certificates has been active. Our processes work well, and deviations are fortunately rare. We are committed to continuous improvement to safeguard the ecological state of forests and waterbodies, and we continue to develop our operations, both on our own and in cooperation with the authorities. The criteria for old-growth and primary forests are nearly ready, and the national implementation of the EU’s Nature Restoration Law is about to start.
As proof of the high quality of our operations, the Finnish Quality Association awarded us the 2024 Finnish Quality Award in November. This is a great recognition of our long-term and customer-oriented work with forest owners and our partners.
Now is an excellent time for wood trade and being part of creating future growth in Finland. Thank you to our owner-members for your good cooperation. Merry Christmas and a Happy New Year!