Tough Q1 for Swedish timber firms as demand dips and costs surge

Posted on April 18, 2025   |  

Swedish forestry companies are facing a difficult start to 2025 due to rising costs and declining demand.

Sawmills and pulp and paper producers are feeling the pressure, with profitability being hit hard.

The strong Swedish krone and newly imposed tariffs are adding further uncertainty to the sector.

Sweden exports over 80% of its pulp, paper, and sawn wood products, with Europe as its main market.

Domestic demand for wood products in 2024 hit its lowest point since the 1990s.

The Swedish construction industry failed to grow as projected, leading to reduced demand for wood and pulp-based products.

Despite resilient export volumes in 2024, the forest industry is facing increased pressure from a weakening economy and trade barriers.