In the third quarter of 2023, energy wood prices in Finland continued their upward trajectory, setting new records and nearing the levels of pulpwood prices. Data sourced from Natural Resources Institute Finland (Luke) indicates that the average price of pruned stems, a significant component of energy wood, reached unprecedented heights during this period.

Between January and September, the purchase of energy wood saw a remarkable increase, with volumes surpassing the five-year average by two-fifths. This surge is attributed to higher volumes of logging residues and unpruned stems, even as trade in pruned stems experienced a slight decline.

In the third quarter, pruned stems constituted two-fifths of energy wood trade, with standing sales witnessing a 23% real-term price increase to Euro 21.4. This surge marked a substantial 2.4 times increase compared to the previous year. In delivery sales, the price rose by 17% to Euro 48.0, a 42% increase from the average price of the previous year.

The report notes that energy wood prices have risen exceptionally fast, nearly aligning with the prices of pulpwood. In the third quarter of 2023, the average price of pruned stems reached around 80% of the average price of pulpwood, signaling a significant convergence. This follows a trend where, at the end of 2022, real prices for pruned stems began to rise, closing the gap with pulpwood prices.

In delivery sales, the prices of pruned stems and pulpwood drew closer, and in the third quarter of 2023, they reached the same level. This marked a notable shift, as traditionally, pulpwood prices were considerably higher than those of pruned stems.

In September, a total of 4.6 million cubic metres of roundwood was harvested for industrial use in Finland. Compared to last year's September, the removal volume was one-fifth or 1.3 million cubic metres lower.

Logging residues constituted nearly half of the total energy wood trade, with an average price of Euro 7.4 per m3 in standing sales. Although the price saw an 8% decrease from the previous quarter, it remained 42% higher than the average price of the previous year. In delivery sales, the price of logging residues increased by 13% to Euro 27.7.

The statistics for the third quarter of 2023 recorded a total energy wood trade volume of 1.0 million m3, showing a 10% year-on-year decrease. However, this volume still exceeded the average of the previous five years by almost a third.

The unit prices in roundwood trade are recorded based on fair prices in the statistical database, adjusted for real terms using the cost-of-living index. It's important to note that the published wood volumes represent just over half of the energy wood purchased from non-industrial private forests, as the information is not rounded up to correspond to the total non-industrial private wood trade in Finland.

The recorded prices are solely based on wood trade agreements between buyers and sellers, excluding government subsidies and any additional increments or services related to wood trade. The analysis considers the annual increase in consumer prices, which was around six percent in the third quarter of 2023.