Tuesday, November 25, 2025
Sweden’s forest-owners’ cooperative Mellanskog is lowering its wood-raw-material prices for several key assortments, effective 19 November 2025, citing a subdued market environment. The cuts apply to new contracts only and affect pulpwood, spruce, and pine timber, as well as biofuel wood.
According to the announcement, the revised price reductions are:
Mellanskog attributes these cuts to a weaker market climate that is hurting demand across multiple forest-product sectors. In particular:
A sluggish construction economy is placing pressure on sawmills’ profitability, which in turn reduces demand for timber assortments.
For pulpwood, Mellanskog warns of “clearly increasing” inventory levels.
Fuelwood (firewood) is also piling up: the association cites a mild autumn, low consumption, and growing stockpiles.
These conditions mirror broader trends in the Swedish forestry sector: oversupply, muted demand, and weakened pricing power. Despite reducing its prices, Mellanskog reassures its members that forest management and long-term value remain strong. In its release, the association emphasises that well-managed stands, especially those with a high proportion of timber, continue to offer good economics even in a weak market.
As a member-owned association, Mellanskog underscores its commitment to fair, transparent, and stable pricing: “Our mission is to create long-term, stable conditions for family forestry – regardless of economic cycles.”
The cooperative also points out that its pricing model is designed to reward membership and to generate value across the association.
Mellanskog’s move comes amid a challenging financial backdrop. In the third quarter of 2025, the association posted a pre-tax loss of roughly €5 million, primarily due to falling delivery volumes and declining timber prices. Nonetheless, the first nine months of the year saw robust performance, with an operating profit of €150 million and total sales reaching €4.45 billion.
This pricing adjustment is not entirely unprecedented: during 2025, Mellanskog has already implemented several rounds of price reductions. For instance, from 25 September, it cut pine sawlogs and small-diameter logs by 50 SEK/m³fub, along with a 40 SEK/m³fub drop for pulpwood and fuelwood. Earlier, in August, the cooperative reduced its base price for hardwood pulpwood by 50 SEK/m³fub and fuelwood by 50 SEK/m³fub.
These reductions spotlight several structural issues in the Swedish forestry economy:
For forest owners in Mellanskog, this may be a moment to reassess their harvesting strategies: thinning decisions, regeneration plans, and timing of felling could all be influenced by the new, lower index prices. At the same time, the firm signals that disciplined forest management remains rewarding, especially for stands with strong timber potential.
From a market perspective, Mellanskog’s pricing move could be a bellwether for other cooperatives and forest companies across Sweden: if demand doesn’t pick up, further corrections may follow.
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Tags: Mellanskog timber price cut, pulpwood price in Sweden, Scandinavian sawmill demand weakness, Swedish family forest economics, Swedish forestry market
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