2016-07-13   facebooktwitterrss

A Good Start to 2016 for Timber Sales

The latest Timber Bulletin published by Tilhill Forestry provides commentary and interpretation on key themes affecting the timber market for forest owners, wood processors and others involved in the sector.

The Timber Bulletin 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.

Timber Bulletin

 

Peter Whitfield, Timber Operations Director, said:
“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.”

The vote to leave the EU and the potential impact of Brexit is also discussed. The report states that the vote has created uncertainty in the market but that the upside is that it is now more expensive to import timber which could provide a welcome boost for UK sawmilling. The sawmilling sector is however vulnerable to the economy and exchange rates.

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

Another concern is that insufficient trees are being planted to meet long-term demand. Figures show that the private sector is dominating supply at more than double the state sectors combined. A trend that is set to continue, but the forecast decline in availability of timber in the period 2027-31 is of concern to processors and growers alike.

Tilhill

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