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Decrease in Finnish pulp and paper production expected

June 11 2012  The Finnish pulp and paper production will decrease this year, while export prices for paper and paperboard will remain flat, according to a report by the Finnish forest research institute METLA.

Demand for many forest industry products will remain weak this year in Finland's most important export areas in the European Union, RISI reports, quoting a report from METLA.The Euro area economy is expected to show a zero growth rate this year, at best, METLA writes. Globally, economic growth is also expected to remain slow. As a result, METLA forecasts Finnish paper production and exports to drop by eight percent to 7.9 million tons and 7.3 million tons, respectively, this year from last year's levels.Paperboard demand, however, has remained reasonable despite the recession, METLA notes. It expects Finnish production and exports of paperboard to edge down by only one percent to 2.7 million tons and 2.5 million tons, respectively, this year, RISI reports.On the price side, METLA forecasts stability for both paper and paperboard prices this year, after increases of six and seven percent, respectively, in 2011.Finnish pulp production remained quite stable during the first quarter this year, while pulp exports rose by eight percent, RISI reports. METLA forecasts a seven percent increase in Finnish pulp exports this year to 2.4 million tons, as global demand will remain strong. Due to lower domestic paper production, the country's pulp output will drop by four percent to 6.5 million tons this year, according to METLA.METLA foresees a five percent decrease in Finnish kraft pulp export prices from the 2011 levels.Finland's Pellervo Economic Research institute published a forecast for 2012-2013 earlier this year, with somewhat more positive figures for production and export volumes and more negative price expectations for 2012, RISI reports.

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