Södra reduces softwood pulp timber price by SEK 25 per m3sub to SEK 325 per m3sub, effective Nov. 11, and softwood sawlog price by SEK 25; price of hardwood pulp timber unchanged on strong demand

VAXJO, Sweden , November 18, 2011 (press release) – Södra is reducing the price of softwood pulp timber, at the same time the price of hardwood pulp timber is held.

Södra is reducing the price of softwood pulp timber by SEK 25 per m3sub (solid volume under bark). The new price, which came into force on Friday, 11 November, is SEK 325 per m3sub.

"The reduction in the price of softwood pulp timber reflects the fact that we need to adjust our stock levels in relation to anticipated demand over the coming months," says Håkan Svensson, Director of Forestry at Södra.

The price of hardwood pulp timber remains unchanged. The price of clean assorted birch pulp timber is SEK 350 per m3sub.

"We are seeing a huge demand for hardwood pulp timber, which is related to the fact that Södra will soon be starting hardwood-based production of textile pulp at Södra Cell Mörrum. As a result of this, the price of birch pulp timber is currently higher than the price of softwood pulp timber. FSC-certified birch is most commonly in demand," says Håkan Svensson.

The softwood sawlog price is also being reduced by SEK 25, with immediate effect.

"We are seeing a reduction in the volumes required for our softwood sawmills, and our stock levels have to be adjusted to tie in with the prevailing situation here, too. This is not applicable to birch and oak saw timber, where Södra is seeing an increase in demand at both of the company's hardwood sawmills. The development of sales of sawn hardwood have really taken off and are expected to hit record levels in 2012. The hardwood saw rate is estimated to amount to almost 100 000 m3sub for the coming year," says Håkan Svensson.

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