Finnish Paper Production to Fall, Export Prices to Rise

http://www.ptt.fi/site/?lan=3&mode=tiedotteet&tiedote_id=1281

Finnish paper production and exports will decrease this year and next, while paperboard and pulp manufacturers will enjoy export growth, according to the Pellervo Economic Research (PTT) Institute's 2013-2014 forecast.

PTT forecasts further drops in Finnish paper volumes. This year, Finnish production and exports of paper will decrease by 1-3% and next year by 1-4%, according to PTT.

This is due to the weak economic situation in Finland's most important export countries, which will drag consumption there down, coupled with a structural decrease in paper demand. As a result, the industry is taking permanent or temporary measures to limit production. In Finland, UPM will close a 245,000 tonne/yr supercalendered paper machine at its Rauma mill in April.
However, PTT foresees increases in Finnish paper export prices. The institute expects prices to either remain stable or rise by up to 2% in 2013 compared to 2012. For 2014 it sees prices rising by 2-3%, as a result of capacity closures in Europe.