{"id":88323,"date":"2024-11-20T07:30:55","date_gmt":"2024-11-20T07:30:55","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/uncertain-2025-outlook-for-uk-softwood-market\/"},"modified":"2025-09-19T09:03:11","modified_gmt":"2025-09-19T09:03:11","slug":"uncertain-2025-outlook-for-uk-softwood-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/uncertain-2025-outlook-for-uk-softwood-market\/","title":{"rendered":"Uncertain 2025 outlook for UK softwood market"},"content":{"rendered":"

<\/span>As 2024 draws to a close, the UK softwood market has failed to meet expectations, with importers and merchants resigned to the likelihood that no significant upturn will occur before the New Year.<\/p>\n

This year has seen a sharp decline in demand, particularly for construction grades. Since July, C24 specifications have been hit hardest, leading to intense competition among wholesalers and monthly price reductions. For sellers reliant on volume targets and operating from quayside facilities, weak demand has meant slower stock-turn rates, and rising quay rental charges are pressuring them to lower prices and push stock into the market.<\/p>\n

In response to sluggish demand for building grades, some Baltic mills have shifted their focus to alternative products like fuelwood, fencing, and pallet specifications. This pivot has proven successful for Latvian mills, with their share of UK imports growing, even as exports of building timber declined. At UK ports, the shift is evident, with higher volumes of treated and rounded posts replacing previously designated cargo spaces for KD carcassing.<\/p>\n

On the quality side, unsorted, fifths, and sixths grades have seen steady demand, with prices remaining stable. While the MENA markets remain active for Nordic mills, Japanese buyers have been scaling back purchases due to stock surpluses, particularly in redwood. There is also a shortage of wider sideboards (200\/225mm) in unsorted and fifth redwood, which may be linked to earlier harvesting cycles and smaller log diameters.<\/p>\n

Packaging and pallet dimensions have maintained a steady demand, with prices holding firm. However, Germany\u2019s weakening industrial production and exports could impact demand for packing grades (emballage), especially with Volkswagen's factory closure plans, as industrial output and exports from Germany fell sharply this year.<\/p>\n

The UK\u2019s weak demand for structural wood has overshadowed supply shortages, particularly for whitewood logs in southern Sweden, where suitable volumes are hard to find. Mills are compensating by substituting redwood in their production lines. In Latvia, supply issues have also arisen due to a state forestry plant health ban on spruce cutting, leaving private forest owners to meet the market's needs.<\/p>\n

Interest from the US has grown for northern European softwood, with Scandinavian mills securing significant volumes. However, sawlog shortages are also becoming a challenge, with specific lengths, particularly 3.0m, in short supply, causing mill production delays. This tightening of supply could eventually reverse the market\u2019s decline, leading to potential price increases.<\/p>\n

The downturn in the UK softwood trade is closely tied to a broader reduction in construction activity, housebuilding, and overall economic expenditure. Timber and builder\u2019s merchants are experiencing delays in payments from contractors, and credit insurers have been reducing or withdrawing cover for some merchant customers.<\/p>\n

While the new Labour government\u2019s budget in late October included pledges to fund housing, the timber industry had hoped for greater emphasis on low-carbon construction. There is optimism that timber frame off-site construction could expand in 2025, offering more eco-efficient housing solutions.<\/p>\n

In the forestry sector, UK growers were relieved that the budget spared them from the harsh measures affecting other agricultural sectors, particularly livestock and arable farmers, who face increased inheritance taxes. However, there are concerns over potential disruptions to timber logistics if farmers follow through with threats to block ports.<\/p>\n

Looking ahead, the UK softwood market remains in a challenging position. Traders are pinning their hopes on increased housing and infrastructure spending to stimulate demand, but whether this will materialize remains uncertain.<\/p>","protected":false},"excerpt":{"rendered":"

As 2024 draws to a close, the UK softwood market has failed to meet expectations, with importers and merchants resigned to the likelihood that no significant upturn will occur before the New Year. 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