Hannes storm drives down pine timber prices as some landowners face disappointment in sales

The Hannes storm has caused a timber oversupply in the South Ostrobothnia region, collapsing prices for pine in particular, reports Finnish public broadcaster Yle. Sawmills have received so much storm-felled wood that they cannot purchase all of it, leaving some landowners unable to sell their timber.

Many pine timber lots—especially small or hard-to-reach batches—are being left to rot in forests. Keitele Group’s Alajärvi sawmill, one of the largest reception points in the region, continues to receive around 40 truckloads of Hannes-felled logs daily, but capacity limits remain.

“Even as the biggest reception site in South Ostrobothnia, we’re hitting our limits,” said Tommi Ylinen-Luopa, Keitele Group’s procurement manager. Pine prices have dropped sharply, with some sellers describing the situation as a “buyer’s market.”

Brothers Juha and Timo Mikkilä, large-scale forest owners from Kurikka, managed to sell most of their storm-damaged timber—around 2,000 cubic meters—thanks in part to long-standing customer relationships. “Some individual trees will still be left to rot, but that’s just something we have to accept,” Timo Mikkilä said.

The storm’s impact on timber trade has been worsened by recent mild winters, which left previously agreed harvest sites uncut. “We’ve had to prioritize those winter sites first,” explained Timo Hongisto, CEO of EPM Metsä, which supplies Lapua’s sawmill. “There’s more wood on offer than we can process.”

Storm-felled timber remains usable for sawmills if transported by early summer; afterward, it degrades to pulpwood or firewood. Keitele Group will decide in May whether further purchases are possible. “We’ll buy more if the situation allows,” Ylinen-Luopa said, noting that risks—such as hidden defects in glue-laminated timber—fall on buyers. Export-grade wood, particularly for markets like Japan, requires strict quality control.

While pine prices have fallen to around €65 per cubic meter (down from a typical €75), spruce demand—and prices—have risen due to stronger European export interest. Exact price drops vary, as negotiations now occur case-by-case.

The Hannes storm, which struck on December 27, 2023, caused unprecedented damage to South Ostrobothnia’s forests, leaving millions of cubic meters of timber still uncollected in some areas.