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2010 UPM Timber Bulletin – Out Now


The 2010 UPM Tilhill Timber Bulletin: ‘Trends and influences on the UK standing coniferous timber sales market’ is out now.

The bulletin, published as an aid to growers and forest managers, shows how cyclical the industry currently is and also that those cycles are getting shorter.

Timber prices have recovered well beyond our forecast, largely due to a continued weak position for Sterling, says Peter Whitfield, Timber Operations Director.

But has the recession bottomed out? All the financial and economic indicators say we have come out of recession, but there still remains a serious concern for the state of the economy,” he added.

Despite the general downturn and a much overall reduced demand for timber, the domestic processing industry has grown its market share for both sawn and board products while imports have tailed off dramatically. The gap remains favourable between the imported sawn price and domestic sawn prices enabling domestic sawmills to increase their market share.

This level of activity has meant demand for all round timber specifications has remained exceptionally strong, so much so that there has been clear evidence of a situation where demand has exceeded supply.

The weak pound has also created a renewed interest in log exports from the West Coast of Scotland to both Ireland and more recently Germany.

There is no doubt that this demand has contributed to the tightening supply position for sawmills in Scotland. Exports of small roundwood have continued both to Scandinavia and to continental Europe at a similar level to 2009, Peter explained.

So what lies ahead? With market cycle times being compressed it is very difficult to make a prediction for the future. While full order books and a weak currency assist the domestic processing industry the uncertainty in the Eurozone economies, the change in UK Government and their approach to tackling the deficit problems, will all unquestionably add to the mix of issues that create unpredictability in the market.

There is no doubt that the forest industry is a resilient one and demand for wood will continue to grow, so we need to ensure that there is a committed supplier base to provide the timber that the UK’s forests have the potential to produce, Peter concluded.

For a copy of the UPM Tilhill Timber Bulletin, please contact UPM Tilhill on freephone
0800 328 2128 or download from the website:

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