{"id":87850,"date":"2024-07-10T06:40:21","date_gmt":"2024-07-10T06:40:21","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/uk-softwood-market-faces-weakening-demand-and-persistent-price-pressures\/"},"modified":"2025-09-19T09:02:23","modified_gmt":"2025-09-19T09:02:23","slug":"uk-softwood-market-faces-weakening-demand-and-persistent-price-pressures","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/uk-softwood-market-faces-weakening-demand-and-persistent-price-pressures\/","title":{"rendered":"UK softwood market faces weakening demand and persistent price pressures"},"content":{"rendered":"

Following a relatively stable start to the second quarter, the softwood market in the UK began to see price increases in April due to a decrease in the availability of sawlogs. Severe weather conditions, including heavy rain and storms across northern Europe, Britain's main sawn timber trading partner,<\/span> left the forest floors too soft for log extraction, causing sawmills to experience shortages in raw materials and specific lengths needed for construction.<\/p>\n

April's consumption was severely impacted by flooding, which disrupted UK building sites and extended the construction slowdown from the first quarter. It was anticipated that with the arrival of warmer and drier weather in May and June, demand would pick up, boosting confidence among merchants and importers.<\/p>\n

Contrary to these expectations, demand showed little improvement, causing a ripple effect of anxiety through the supply chain. Distributors with inventories incurring quay rental charges felt the pressure to reduce prices to maintain sales volumes. The price of C24 lumber began to decline, approaching levels seen in February and March. For shippers focused on maintaining market share, this situation was dire, as fierce competition for each order led to zero profit margins.<\/p>\n

This trend of uncertain demand and falling prices has obscured deeper issues within the supply chain. Costs for logs and production are rising in Scandinavia, and Latvia has implemented a moratorium on spruce tree felling due to plant health concerns. Additionally, the upcoming EUDR (Deforestation Regulation EU 2023\/1115) could impact future forestry practices within the EU.<\/p>\n

As June draws to a close and the Bank of England maintains interest rates at 5.25%, housebuilding remains sluggish, with merchants reporting inconsistent demand for first and second fix materials. Regional variations exist, but overall, site activity is lagging.<\/p>\n

The economic challenges, including tight fiscal conditions affecting new mortgages and existing homebuyer commitments, coupled with the political uncertainty from the snap general election on July 4, have made softwood buyers cautious. Many are resorting to \"just in time\" purchasing, avoiding large forward market commitments. The first quarter of 2024 already showed a more than 7% decline in imports compared to the same period last year, continuing a three-year trend of decreasing softwood imports.<\/p>\n

Despite the current market weakness, an underlying shortage of softwood sawlogs persists in both Sweden and the Baltic States. Rising log prices in Latvia have pushed many mills away from producing C24, as costs outweigh potential profits. Some Swedish producers of joinery grade timber have shifted part of their production to carcassing, hoping to gain market share for when conditions improve. There is optimism that eventual shortages could drive prices to sustainable and profitable levels.<\/p>\n

For now, however, price movements are being dictated solely by demand, which continues on a downward path.<\/p>","protected":false},"excerpt":{"rendered":"

Following a relatively stable start to the second quarter, the softwood market in the UK began to see price increases in April due to a decrease in the availability of sawlogs. 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