Sale of pulpwood

Pulpwood constitutes a third of the total amount of timber sold by RMK.

The annual average amount sold is approximately 1.2 million m³ and it includes spruce, pine, birch and aspen pulpwood. On average, spruce pulpwood constitutes 30%, pine pulpwood 16%, birch pulpwood 37% and aspen pulpwood 17% of the sold amount.

85% of pulpwood is sold at a negotiated price, under long-term contracts, and up to 15% is sold in auctions. Long-term contracts ensure long-term markets for timber and most of the timber is exported due to limited local consumption. In Estonia, aspen pulpwood is being used, with local demand for coniferous pulpwood growing as well.

Negotiations to conclude contracts are held once a year, with the contracts concluded for a period of five years. The usual value of wood in the Baltic Sea region will be adhered to when negotiating prices. Auctions are organised to obtain a price indication and ensure an opportunity for newly interested parties.