18 | Sector Market Update: Softwood
SOFTWOOD DEMAND
JUNE SEES CRACKS IN STRUCTURAL
After a good start to the year, UK softwood traders are experiencing lower demand and weakening prices. TTJ’s softwood specialist, Jerry Wilson, reports
the predictable option of dropping prices progressively in June.
In the background, new building projects that were planned to start in Q2 failed to physically materialise, and several of the national developers deferred start-ups, and in some cases postponed the release of new building phases. These moves took timber merchants by surprise and decreased their stock turnaround times.
There are many issues affecting new housing developments, which include delays in planning consent and infrastructure issues such as sufficient domestic water and power supplies. In addition, trained and skilled labour resources are still insufficient to meet the pent up demand. The government’s much publicised mass planning and building plans have not yet translated into sufficient activity to generate the confidence necessary to create demand to the level so badly needed by the timber industry.
Top: Many importers hope that potential surpluses will be wiped out by sawmills’ summer breaks and production downtime Above: Prices flattened and ultimately weakened in June
UK softwood traders enjoyed a period of strong trading through the first two months of Q2, supported by a rise in demand gaining momentum through both April and May. This followed on from a stable Q1 when imports increased by just under 2% against the same period in 2024.
Since the beginning of this year, a number of Nordic producers were short of spruce logs for structural grades, and in many cases switched to pine. That move had a knock-on effect on the amount of redwood available for production at some mills, leaving gaps in specifications in the grades U/S, 5th and 6th.
With good demand and some shortages, Q2 prices moved upwards, not only to the
TTJ | July/August 2025 |
www.ttjonline.com
UK but other markets in Europe and the US as well. However, many times bitten and many times shy, the UK merchants adopted a more sceptical and cautious approach to the messages being communicated by the shippers and distributors. Many held back from making longer-term commitments on the forward market to ensure the recovery and stability in the market was sustainable. But, sure enough, as June began, cracks in demand started to appear, with prices flattening and ultimately weakening, the demand for structural softwood fell at a more noticeable pace as merchants pulled up the drawbridge. This sudden damping down in demand forced some distributors into panicking, and as always, they took
The generic work done by the timber industry, and notably by TDUK and affiliate associations to promote wood as a go-to low carbon building product is certainly succeeding in persuading specifiers to use more timber in design. However, this too often remains on the drawing board rather than materialising into tangible development, and while more timber frame is being used in today’s construction, a further rise in momentum is needed to create a reliable and firm market.
When the mills initiate their summer breaks, many of the importers hope that production downturns will wipe any potential surpluses out of the supply chain and underpin prices against any further reductions.
In Sweden, (the UK’s largest supplier of imported softwood), there are several industrial strikes under way, which are affecting trailer logistics at the ferry ports. With no end in sight, it is likely that the trade will increase liner cargoes of break-bulk shipments from unaffected ports to avoid ongoing delays. ■
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 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85
