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and even isolated villages and towns to the east in the Ukraine. Large numbers of the forestry and sawmilling workforce became infected and were forced to isolate, causing both a temporary cessation of log extraction and closure of several mills.
In spite of the many difficulties relating to the supplies of raw material, Latvian softwood exports to the UK last year increased to almost a 20% share of the market. The actual products within that figure are not accurately disseminated, but visual assessments made at UK ports showed high volumes of rounded posts, landscaping products and pallet wood as opposed to strength-graded material. While raw material shortages have been affecting Latvian production, the US market continues to draw increasing volumes from north European producers. This market has consistently been paying higher prices for structural softwood over and above the UK and Europe.
The larger forest products groups in Sweden have been active for several years in the US, and with firm demand and premium prices, it is extremely unlikely that any volumes allocated to the US market would be re-allocated back into Europe. Scandinavian and continental markets are
busy. Sweden’s own domestic consumption is averaging more than 5 million m3
per year
and importers in Denmark, Norway and the Netherlands are all pushing for more volume and are ready to pay the necessary price to secure supply.
With such strong widespread demand, there is little chance of any surplus arising for UK buyers. Most importantly, given the foregoing background of supply and demand, there is little evidence that any sudden drop in price
could occur as witnessed in 2019 when the market crashed at a rapid pace. Turning to the quality grades for joinery, planing and industrial use, the sawmill allocations to the UK are selling consistently and certain specifications like redwood sawfalling and straight fifth grade for decking material is still struggling to keep up with demand. Prices of the high-quality productions of unsorted and fifth are trading below those of C24 construction timber purely down to the high demand for the latter. The fallout from Brexit appears to have been very limited, and contacts around the UK confirmed that normal break-bulk softwood cargoes had been cleared efficiently. One importer commented that issues had appeared with trailer traffic into Northern Ireland carrying speciality sheet materials but these problems were successfully overcome. The extreme weather conditions in the Baltic Sea and Gulf of Bothnia needed the services of icebreakers to get some vessels under way. Many of the regular liner vessels are already built to ice class specifications and can move more freely, but conditions have been such that voyages have been extended an extra day or two between loading and discharge.
The performance of timber treatment has been a matter of concern to the members of the Timber Trade Federation and Wood Protection Association, and this has manifested itself in an initiative to drive up basic standards of wood preservation. From the end of March, members will be required to supply product suitable for its intended use. Members will be required to state the Use Class on documentation and to provide guidance on what the classes mean. From Use
Class 1 to 5, there are end uses that need the treatment efficacy to deliver the appropriate protection. For example, UC2 would provide protection against insect and fungal attack in internal situations such as roofing beams, but for actual ground contact, UC4 must be supplied.
It goes without saying that species, moisture content and treatment process control will all play a part in trying to achieve this goal. The most suitable of commonly available European species suited to UC4 is redwood pine (pinus sylvestris) , but it is widely agreed that due to its cell structure kiln-dried whitewood spruce (picea abies) will struggle to achieve a certifiably level higher than UC2.
At this stage it would appear that for UC3/4 structural sizes such as 45x145mm redwood must be selected, while whitewood in such a dimension would be limited to UC2 (internal or element-protected).
MARKET SUMMARY
Looking at the strength in demand across the global softwood market, supply appears to be much tighter than the trade initially anticipated. Prices have risen accordingly, and in the UK, kiln dried C24 levels have increased between 64% and 67% since Q1 2020 to a current level which is a record high when translated into sterling. This surge in the market comes after many painful decades, when softwood virtually stood still compared to many other commodities. The substantial investments in machinery, logistics and forestry that so many companies have made throughout the industry may now finally prove their worth. ■
Above left: Increasing volumes of rounded posts are seen at the ports Above right: The Baltic region has experienced a severe winter. The Celtic Raider loading at Bekkeri, Estonia (COURTSEY OF CHARLES WILLIE SHIPPING)
www.ttjonline.com | March/April 2021 | TTJ
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