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UK softwood prices rises amid persistent demand slowdown
Posted on March 25, 2025 |
Softwood demand has seen a slight uptick over the past two months but remains weaker than expected, with gains limited to specific products.
C24 continues to face challenges, requiring significant financial investment from importers and merchants while experiencing sharp fluctuations in price and demand.
Credit insurers have tightened their policies, reducing or canceling coverage due to financial struggles among timber merchants.
Prices are increasing despite weak demand, driven by rising raw material costs and supply shortages, with producers planning monthly price adjustments.
Baltic suppliers have shifted their focus from construction timber to alternative markets like wood fuel, pallets, and fencing due to higher log costs.
Swedish mills have temporarily halted production to manage rising raw material expenses, contributing to price hikes in the supply chain.
UK softwood imports grew by 86,000m³ (+1.5%) in 2023, while overall pricing remained stable compared to the previous year.
Sweden supplied 47% of UK softwood imports, followed by Latvia (17%), Finland (12%), and Germany and Ireland (8% each).
A shortage of whitewood logs in Sweden has led to greater use of kiln-dried redwood for treated carcassing, as it absorbs preservatives more effectively than spruce.
The market is shifting towards prefabricated timber frame construction, cassette floors, and engineered wood beams, while solid wood joists are becoming less common in new housing developments.