Timber Market undergoes biggest period of change in decades
Property Consultants Bidwells have released their Summer 2018 Timber Price Database which looks at the standing conifer timber prices achieved in the six months to September 2017, indicating the timber market has undergone perhaps the biggest period of change seen in decades.
Returns from 79 transactions totalling over 742,000 cubic metres of coniferous timber, with a value to the grower in excess of £28 Million have been received and indicate on average significant price rises over the period.
With Bidwell’s last commentary back in December 2017 stated that there were “current reports of supply shortages and increasing upwards pressure on standing sales values” – this has proved to be something of an understatement as the latest set of results for October 2017 – March 2018 had clearly demonstrated.
All signals are pointing towards prices of coniferous timber throughout Scotland & Northern England having continued to increase since the end of March and there are still considerable supply pressures on timber processors.
Raymond Henderson, Forestry Partner at Bidwells commented: “It is always difficult to predict the future, given the influence which global demand and exchange rates have on domestic timber values, but the overall macro-economic situation of increasing demand and tightening supplies suggests no reason to suspect a weakening of prices over the short term."
“Good news for timber growers then, but possibly less so for many processors, and given the closely linked health dependence of each sector on the other, it can be in no-one’s best interests to see unsustainably high prices. The hope is therefore that what we have been seeing is a re-basing of timber values at levels which can be maintained in the long term.”
To view the full insights and research, please click on the report here.