11 Apr Timber prices on the rise
UK Experiencing Shortage In Timber
The UK is currently experiencing a shortage in the supply of timber, due to various global issues. Pallets, wooden pallets and packaging despite their demand are particularly scarce. In-turn this shortage has resulted in a rise in timber prices for manufacturers, suppliers and customers.
The combination of high global demand along with the reduced volume of the raw materials available due to supply issues is causing the problem.
Availability of timber has reduced for a number of various reasons. Sawmills are reducing the amount they are producing due to the higher costs of log prices. They are prioritising fencing and construction sectors, the mills, however, benefit more from higher added value and more improvement on log yields.
Unseasonable wet weather, leading to higher log prices are affecting the sawmills profit margins. In turn this leads to timber prices rising, currently, they are no signs of this slowing down.
Many factors have to lead to this situation according to TIMCON
- High demand globally
- High demand from China
- Scandinavian timber flowing to construction in the US market
- The unfavourable exchange rate which was caused by Brexit
- Baltic supplies down due to the unseasonably wet weather we have experienced.
- Good UK demand
- Subsidised biomass industry buying up small logs, packaging and pallet industry uses
- The weather has affected the harvesting of home-grown timber
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