Finland’s energywood market saw a sharp contraction last year, with purchase volumes falling by nearly half, according to new figures from Natural Resources Institute Finland (Luke). The decline highlights weakening demand for low-grade wood assortments and residues used in energy generation, with implications for log prices and regional wood flows, as Finland energywood prices face weaker demand conditions.
Luke said total energywood purchases in Finland reached about 3.5 million cubic metres in 2025, representing a 45% year-on-year decrease. The downturn affected all major energywood categories, including delimbed stems, whole trees, and logging residues.
Market context for Finland’s energywood prices
Energywood plays a key role in Finland’s forest economy, providing an outlet for low-diameter trees, harvest residues, and material unsuitable for sawlogs or pulpwood. Demand is closely linked to energy prices, weather conditions, and the operating rates of combined heat and power plants.
According to Luke, the 2025 decline followed a year of lower procurement activity across much of the country. Reduced purchasing volumes were recorded both in roadside-delivered wood and in stumpage sales, indicating that the slowdown was not limited to a single sales channel.
The data suggests that energy producers were sourcing less raw material overall, although Luke did not specify the underlying drivers behind the contraction in its summary.
Price differences by sales type
Alongside volume data, Luke reported average prices by sales method, highlighting differences between stumpage sales and delivery-based transactions.
Delivered energywood continued to command higher prices than stumpage sales, reflecting transport and handling costs. Prices also varied by assortment, with delimbed stems typically priced above logging residues and whole trees.
Regional price spreads were also evident, underscoring how local supply conditions, transport distances, and competition between buyers influence market outcomes even within a relatively compact national market.
Luke’s figures point to a market where price formation remains fragmented, with no single national benchmark capturing the full picture of energywood value.
Implications for log and residue markets
While energywood is distinct from industrial roundwood, the sharp drop in purchases can affect broader wood markets. Lower demand for energywood reduces an outlet for harvesting residues and small-diameter material, potentially influencing harvesting decisions and cost structures.
In regions where energy plants compete with pulp and board producers for fibre, reduced energywood demand can ease pressure on low-grade log assortments. Conversely, it may also discourage thinning operations if residue removal becomes less economical.
For forest owners and contractors, weaker energywood demand can translate into lower overall harvesting revenues, even if sawlog or pulpwood prices remain stable.
Industry perspective
The Luke data provides a statistical snapshot rather than an industry commentary, and no producer or utility responses were included in the release. However, the scale of the decline suggests that 2025 marked a significant reset for Finland’s energywood market compared with the previous year.
Market participants typically watch energywood demand closely as an indicator of bioenergy sector activity and its interaction with traditional forest product markets.
Any sustained reduction in energywood purchases could have knock-on effects for harvesting intensity, residue availability, and regional supply chains.
Market impact
From a pricing perspective, the contraction in energywood volumes points to softer conditions for low-grade wood assortments, with potential spillover effects on log prices in areas where energy use forms part of the demand mix. Taken together, the data suggests that Finland energywood prices remain under pressure in regions where bioenergy demand is an important outlet for low-grade wood.
As Finland enters the new year, energywood purchasing patterns will be watched closely for signs of recovery or further adjustment, especially as energy markets and weather conditions evolve.
