The European paper industry has suffered for years from overcapacity which has kept a lid on prices, while increasing costs of wood and energy have eaten into already low margins. And Stora said it would not change its restructuring plans even if Russia reversed the planned hikes in export duties.
"We strategically will not become any more so dependent on Russian wood. Three years ago we were by far the largest importer. With today's news we are strategically independent," Stora CEO Jouko Karvinen told Reuters.
"If Russia decides on a compromise, we will use it to make money, that's it," he said on the sidelines of a conference.
"(This) is positive as it includes the potential permanent closure of paper capacity that should be helpful with regard to restoring the market balance in certain paper segments and, in turn, pricing power," UniCredit said in a note on UPM.
"The biggest impact is on carton and newsprint. Both have immediately a much better outlook, and this also profits the competition," said Handelsbanken analyst Sampo Timonen.
UPM said the outlook for newsprint has weakened, and it would shut its large paper mill in Kajaani, which makes mostly newsprint.
But the firms probably have more to do as neither cut fine paper capacity, where analysts see the most overcapacity.
"On the fine paper side, this cannot continue as it is, so something should happen on that side as well," eQ Bank analyst Katja Keitaanniemi said.
Finland's forest industry employs about 200,000 people.
