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WhatWood Blog Pulp & Paper UPM: Plywood market in 2012 was tough on strong competition from Latin America and Russia

UPM: Plywood market in 2012 was tough on strong competition from Latin America and Russia

10 April 2013 ` 06:30  

Helsinki, April 10. Sales of UPM in 2012 reached €10.44 billion, which is 4% higher on-year. However, operating profit of the company declined by 22% to €530 million, as reported in the annual report of UPM.

Log prices in Finland in 2012 were higher than average, while pulpwood prices remained stable. Birch import volumes from Russia increased, while pine and spruce imports remained low, although the country joined WTO. In Central Europe, prices were uneven, but generally stable or slightly higher than average.

Demand remained weak in Europe, which resulted in lower prices. However, in the North Africa, Middle East, and Asia demand was quite stable.

Russia was fifth in terms of wood deliveries to UPM, after Finland, Uruguay, Germany and Austria with the volume of 613,000 cu m (639,000 cu m a year ago).

Plywood market was tough, as there has been strong competition from Latin America and Russia.

As quoted in the annual report, average NBSK pulp price in 2012 was €634 per ton, which is 8% lower on-year. At the end of the year, it stayed at €613.

Hardwood pulp BHKP price was €585, which is 1% higher, while at the end of 2012 it reached €587.

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