SWEDEN (News release) -- Södra makes a broad timber price increase and raises the price for timber, pulpwood, low timber and fuel wood. At the same time, contractors are also compensated for the cost increase that has taken place due to higher fuel prices.

Demand for forest products remains high, while there is great uncertainty in Europe with consequences for both individuals and markets. In order to maintain the flows to the industry and strengthen the members' profitability, Södra will increase the prices of several timber ranges from today, 11 March.

- We estimate that demand for forest products will be strong in the spring, but we are in a very uncertain situation with war in Ukraine and global turbulence. This shows the importance of a strong domestic industry and stable flows from the forest, says Olof Hansson, business area manager for Södra Skog.

- Rising costs, not least for fuel, have a negative effect on family forestry and make it more difficult to extract raw materials from the forest. We see an increasingly tough situation for Södra's 52,000 members. To counteract this, we now choose to make a broad price increase for timber.

Cost increase is compensated
In 2022, Södra worked with almost 200 construction companies, which worked with machinery in the forest and were affected by high fuel prices. Södra will compensate the contractors retroactively for the cost increase in recent months, according to a new decision. Going forward, Södra will also update its diesel index monthly instead of quarterly.

- The situation right now is exceptional. It is central that the contractors can carry out work in the forest and therefore we compensate for the recent cost increase. It is reasonable that we in Södra temporarily take this cost together without passing on the cost increase to our members. An additional reason is that many forest owners are forced to postpone their felling because we have to prioritize storm reprocessing to avoid large spruce bark beetle infestations this summer , says Olof Hansson, business area manager for Södra Skog.

The following price increases are made and apply from 11 March 2022:

• Normal timber of spruce and pine is increased by SEK 30 / m³fub
• Small range and log of conifers are increased by SEK 30 / m³fub
• Coniferous and deciduous pulpwood is increased by SEK 30 / m³fub
• Fuel wood is increased by SEK 30 / m³fub