Softwood supply finally catching construction demand, says TTF
More than seven million m3 of timber and
panel products were imported by the UK between January and July 2021, according
to the latest Timber
Trade Federation (TTF) Market Statement.
This is nearly two million m3 above the same
period in 2020, and half a million m3 above 2019 levels - the UKs
last ‘regular year’ before COVID-19 – which is about an 8% increase.
These record-breaking volumes of imports reflect high demand
for timber products with a strong RM&I sector and a resurgent private
housing market having kept supply on allocation.
Timber prices, and structural softwood in particular,
experienced rapid increases over the course of 2021, a trend explored in an
earlier joint timber industry Market
Statement in July.
These latest TTF statistics show the average price of sawn
and planed softwood in May, June and July rose by 55%, 65% and 88% respectively
over their corresponding months in 2020.
Nick Boulton, TTF head of technical and trade, said:
“After a year of record
production and nine months of near record structural softwood imports it is
highly likely the UK is at a point where there is sufficient volume of wood at
UK ports and in the UK timber supply chain to satisfy construction demand.
“With Q3 now behind us, which
we viewed as a real pressure point this year between supply and demand for timber
products, we expect that over the coming months we will find there is greater
stability within the UK market.
“However we are not yet out
the woods as any return to ‘regular’ patterns within the UK market will be
difficult amidst the ongoing shortage of HGV drivers, and in fuel and labour,
which are likely to continue to impact the market in the coming months.
“These shortages are of high
concern to the timber supply chain as while there may now be enough timber in
the UK to meet demand it does little good to anyone when there are no means to
transport stock from ports to warehouses or customers.
“The challenges posed by these
shortages are being felt right across the UK economy, and as discussed in our
Market Statement, you can view their impact in the latest statistics coming out
from the construction sector with growth shown to be tailing off in June and
July.
“Despite these challenges, we
are confident the timber supply chain can continue to rise to meet the growing
demand for sustainable, low-carbon construction materials we are seeing in the
market – as it has done so for the past 20 months.
“The UK timber supply chain
has proven to be remarkedly resilient amidst an ongoing series of intense
global and local pressures which have rippled out since the pandemic, as
evidenced through the impressive import volumes reached in 2021.
“As a low-carbon, and
crucially - amidst a looming global energy crisis – low-energy construction
material, timber is likely to grow as the material of choice among climate
conscious architects, engineers, developers and planners in the UK.”
You can read the full report on the TTF website:
https://ttf.co.uk/download/ttf-market-statement-october-2021/