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MARKET BEATS 11
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UK Timber Industry Falls Demand for packaging and pallet dimensions has continued

Short at a steady pace through the year with prices holding their
ground, and late shipments creating shortages in 16mm
sixth-grade boards.

UK softwood market falls short of expectations In the UK, the weak demand for structural wood has been
This year’s UK softwood market fell far short of most importers masking the fact that there are shortages in the supply chain,
and merchants’ expectations. With the year-end in sight, the and whitewood logs across southern Sweden are difficult to
current mood among UK distributors is one of resignation acquire in suitable volumes.
that an upturn is unlikely to materialise before the New Year, In the current market, several mills are substituting
according to ttjonline.com. redwood on their production lines to compensate. While in
As the UK developed into a cut-throat market, some Baltic Latvia, whitewood specifications have also been in short
mills gave up on carcassing specifications focusing instead supply following an ongoing state forestry plant health ban
on alternative products. By employing a greater emphasis on cutting spruce. This has reduced overall availability, with

on fuelwood, fencing, packing and pallet specifications, they mostly private forest owners left to supply the market.
managed to achieve more realistic financial returns. The UK softwood trade’s performance has been related
This switch away from building grades has proved to be to a downturn in construction activity, housebuilding and
a relative success, as Latvia’s share of the UK import volume ultimately expenditure in the general economy.
has actually grown on a percentage basis although exports Timber and builder’s merchants have witnessed growing
of building timber have reduced. delays in getting paid by contractors, while the importers’ credit
The switch can be physically seen at several UK ports, insurers have been reducing credit limits or even withdrawing

where higher volumes of treated and rounded posts for cover completely on some of their merchant customers.
agricultural fencing have replaced areas of cargo space As the UK digests the impact of the new Labour government’s
previously reserved for KD carcassing. budget delivered on 30th October, reactions from the building

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