Sale of pulpwood

Pulpwood makes up 23% of RMK’s timber sales revenue and 41% of the quantity.

The annual average sales volume is approximately 1million cubic metres and includes spruce, pine, birch and aspen timber. Spruce pulpwood makes up an average 28% of the volume, pine pulpwood 15%, birch pulpwood 39% and aspen pulpwood 18%.

Pulpwood is sold at negotiated prices under long-term contracts and at auction.  The conclusion of long-term contracts secures long-term market opportunities for pulpwood, and a large proportion of pulpwood is exported due to limited local consumption.

Contracts are concluded for up to five years and include annual minimum negotiated volumes and, as a rule, prices negotiated for 3 months. Prices are negotiated based on the usual value of timber. Auctions are held to obtain indicative prices and to guarantee an opportunity for new prospective buyers.