A divided outlook for Sweden’s timber industry as the market moves into 2026

Sweden’s timber industry enters 2026 with mixed signals. After several years marked by high raw material prices, weak demand and a stronger krona, conditions are starting to shift. There are early indications that the first half of 2026 may bring some relief, but the overall picture remains uneven. Recent assessments, including Handelsbanken’s forest report, describe the past period as an unusually deep and prolonged downturn. Throughout 2025, high input costs and reduced competitiveness forced sawmills across the Nordics to cut capacity and tighten operations. Many have postponed investments and focused on keeping production aligned with weaker market ...