There must be a structural oversupply in the timber market. This benefits both the buyer and the seller.
Rainer Häggblom, Chairman of the Board of Vision Hunters
Why should we strive for an oversupply situation and how can we achieve it? Rainer Häggblom
Cyclicality in the timber market is self-destructive. In the timber market, the other party must constantly buy, otherwise capacity will have to be closed from time to time. However, there are no costs for the seller if it is not sold. As a result, if there is no structural overcapacity, the arrangement inevitably leads to the closure of capacity at the bottom of the cycle. There is a risk that the closed capacity will not be restarted. This in turn will reduce demand for timber in the future. Russian timber will create a genuine timber market for us if the country becomes a WTO member and timber tariffs are abolished. Timber is available in Russia at a price that gives the buyer an alternative.
