18 | Sector Market Update: Softwood
SUMMARY
■Demand from the construction sector isn’t expected to improve much during the first quarter
■Buyers are keeping a tight rein on stocks
■Shippers are talking of shortages and price rises through Q1
■Sweden is experiencing higher demand from US buyers
MIXED FEELINGS IN SOFTWOOD SECTOR
There are concerns about the prospects for trade in 2025, but the softwood sector remains cautiously optimistic. Jerry Wilson reports
As the New Year begins, mixed feelings are running through the UK softwood trade, ranging from optimism to extreme caution. While some merchants are optimistic that the government’s pledge to mass build will ensure an uplift in demand, others are dubious, citing skilled labour shortages and mortgage costs, which are still on the high side. Either way, all agree it is unlikely that demand will improve much during the first quarter, or even in the first half of the year. Until the path ahead becomes clearer, many buyers are keeping a very tight rein on their inventory levels to retain as much liquidity in the business as possible. Merchants with re-processing facilities, such as planing and sawing equipment, are facing the additional burden of increasing energy tariffs. All timber distributors are battling against rising insurance costs, employers’ NI increased contributions and wage inflation. These factors are adding extra pressure to distributors already battling reduced trading margins due to vicious competition linked to weak demand.
Above: Softwood demand is unlikely to improve much in Q1 or even H1 TTJ | January/February 2025 |
www.ttjonline.com
In recent years, timber merchants have become wary of being warned of price increases due to log shortages and rising costs, only to witness the effects failing to materialise in the UK market. Instead, suppliers lost their resolve on many occasions and prices dropped back to the previous month’s levels, and yet the merchants still found what they needed from landed stocks. So, it is not surprising that the latest message from producers of log shortages and price increases is being treated with some
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69
