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Demand for Wood Products Causing Higher Log, Wood Chip Prices

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Strong markets for lumber, pulp and paper have made the demand for logs in Sweden high and caused a substantial increase in log and wood chip prices during the past year, according to the Wood Resource Quarterly, Seattle, Wash., USA.

Sawlog prices in Sweden continued to rise in the second quarter to their highest levels on record, but Swedish sawmills continue to have lower wood costs than many of their competitors in Finland, Germany and Austria, as reported in the Wood Resource Quarterly.

Pulpwood costs, which account for more than half of Swedish pulp mills' cash costs, were higher in the second quarter of this year than the second quarter of 2009.