Fuel wood in chips and particles market in Finland

Earlier Report Observations

The Finnish market for fuel wood chips expanded from 5.75 million tons in 2018 to a peak of 6.95 million tons in 2021. This growth was supported by climate policy objectives to replace energy peat with wood chips, which increased demand for renewable fuel. The moisture content and calorific value of wood chips were significant factors in price formation, influencing market dynamics.

A sharp shift occurred in 2022 when Russia's invasion of Ukraine drove up prices for all fuels due to supply constraints and heightened demand, reducing the market volume to 6.32 million tons. The decline accelerated to 4.89 million tons in 2023, influenced by further price increases for domestic wood chips and the initial implementation of the EU Distribution Infrastructure Regulation (EU 2023/1804), which alters infrastructure access for alternative fuels. By 2024, the market partially recovered to 5.17 million tons amid the ongoing enforcement of the EU regulation.

Production fuel wood in chips and particles in Finland

In value, 2017-2020, M $ US

After two years of growth, Finland's production of fuel wood in chips and particles declined in 2020. The output was valued at 363.4 million US dollars, marking a gradual decrease of 4.6% compared to 2019. Production peaked in 2019 at 381.1 million US dollars. Over the period from 2017 to 2020, production increased by 10.7%, which translates to an average annual growth rate of 3.4%. The largest annual increase occurred in 2018, with an 8.9% rise.

Annual dynamics of production in Finland in value, 2017-2020, M $ US

In kind, 2017-2020, K t

Finland ranked 11th globally in the production of fuel wood in chips and particles from 2017 to 2020.

Top producers of fuel wood in chips and particles, 2017-2020

World map of production of fuel wood in chips and particles, 2017-2020

In 2020, Finland produced 3 732 thousand tonnes of fuel wood in chips and particles, representing a slight increase of 1.1% from the previous year. Production reached its lowest point in 2019 at 3 692 thousand tonnes, with the largest annual decline of 0.6% also recorded that year.

Annual dynamics of production in Finland in kind, 2017-2020, K t

Exports fuel wood in chips and particles from Finland

Exports in kind, K t

Finland's exports of fuel wood in chips and particles increased for the second consecutive year in 2020, reaching 141 thousand tonnes, which is 15.5% higher than in 2019. Exports hit their lowest level in 2018 at 86 thousand tonnes, with the largest annual decline of 38.2% occurring that year. The most significant increase was recorded in 2019, with a 41.1% rise.

Annual dynamics of product's exports from Finland in kind, 2017-2020, K t

From 2017 to 2020, Finland's exports in kind were heavily concentrated on Sweden, which accounted for 84.5% of total flows, while other partners made up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Finland in kind, 2017-2020

Exports in value, M $ US

Finland's cross-border shipments of fuel wood in chips and particles increased for the second year in a row in 2020, with export value totaling 10.6 million US dollars, up 1.5% from the prior year. The lowest value was recorded in 2018 at 6.5 million US dollars, when the largest annual decline of 32.6% occurred. The most substantial increase took place in 2019, with a 61.6% rise. Over the 2017-2020 period, exports grew by 10.6%, corresponding to an average annual growth rate of 3.4%.

Annual dynamics of product's exports from Finland in value, 2017-2020, M $ US

Throughout 2017-2020, Sweden dominated Finland's export structure in value terms, holding a 77.0% share of total flows, while other markets had relatively modest shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Finland in value, 2017-2020

Imports fuel wood in chips and particles to Finland

Imports in kind, K t

Finland's imports of fuel wood in chips and particles increased for the third consecutive year in 2020, reaching 2 996 thousand tonnes, a 30.2% rise compared to 2019. Between 2017 and 2020, imports grew by 64.2%, equating to an average annual growth rate of 18.0%.

Annual dynamics of product's imports to Finland in kind, 2017-2020, K t

From 2017 to 2020, Russia clearly dominated Finland's imports in kind of fuel wood in chips and particles, accounting for 79.5% of total flows, with other countries each holding significantly smaller shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Finland in kind, 2017-2020

Imports in value, M $ US

Finland's imports of fuel wood in chips and particles increased for the third year in a row in 2020, totaling 202.5 million US dollars, which represents a 9.1% rise compared to 2019. Over the 2017-2020 period, imports surged by 91.2%, corresponding to an average annual growth rate of 24.1%.

Annual dynamics of product's imports to Finland in value, 2017-2020, M $ US

Throughout 2017-2020, the partner structure for Finland's imports in value terms was centered on Russia, which held a 71.0% share of total flows, while other markets formed a less significant portion.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Finland in value, 2017-2020