State of UK Timber Market under lens in Tilhill Forestry Bulletin

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State of UK Timber Market under lens in Tilhill Forestry Bulletin

Tilhill Forestry has published its new Timber Bulletin providing commentary and interpretation on key themes affecting the UK timber market.

The report explains that, while prices were down during 2015 for small roundwood, logs and standing timber, the first half of 2016 has seen a rebound driven mostly by the sawn fencing market and the weakened Sterling.

The vote to leave the EU and the potential impact of Brexit are also discussed in the Bulletin. The report states that the vote has created uncertainty in the market making timber imports more expensive. That could provide a boost for UK sawmilling compensating sector's vulnerability to economy and exchange rates.

Biomass and the panel sector seem to be less exposed to economic uncertainty although biomass will be hit hard by the reforms to the Renewable Heath Initiative (RHI) targeting residential and small commercial installations.

Another concern underlined in the Bulletin regards the insufficient tree plantation policy. Figures show that the private sector is dominating supply at more than double the state sectors combined. Even though the trend is set to continue, the forecast decline in availability of timber in the period 2027-31 is of concern to processors and growers alike.

Peter Whitfield, Timber Operations Director, commented: “The report clearly illustrates that the last year has been a turbulent one with many parts of our industry being negatively affected. However, it is not all doom and gloom; in the context of the global average, the UK has performed strongly and with exchange rates likely to be in our favour, it is forecast to continue to do so in comparison with other countries.”

To read and download a copy of the report click here.

Tilhill Forestry Ltd - a wholly owned subsidiary of the BSW Timber Group - is a national company providing a full range of consultancy and contracting services to UK forest owner and forestry investor.

 

[News URL: http://www.cti-timber.org/content/state-uk-timber-market-under-lens-tilhill-forestry-bulletin]