The timber import market enjoyed a stronger
month in April 2024, with volumes 4.7% higher than those in April 2023,
according to the latest TDUK statistics.
Although imports of most timber
products still remain below those seen last year, this better April has reduced
the deficit gap between 2024 and 2023 to 109,000m3, down from
150,000m3 at the end of Q1.
This latest improvement has moved all product groups into single-digit
reductions, with the exception of plywood imports that are 2% higher in 2024 to
date.
In softwood imports, for example, the value of imports in the first four
months of 2024 was 7% lower than during the same period in 2023, caused by a 4%
reduction in volume and a 3% fall in the average price of a basket of softwood
imports.
For plywoods, softwood plywood imports experienced probably the greatest
change in sources of supply for many years. Volume in the month was around
5,000m3 higher than in April 2023, with Brazil leading the increases
by supplying nearly 3,500m3 more in the month. China and Chile also
supplied more, as did Uruguay and Canada, though there was a substantial fall
in volume from Finland. Overall for the quarter, the value of all plywood
imports was still 10% below the level in the first four months of 2023. Softwood
plywood values were 18% lower and hardwood plywood values remained 7% down.
While TDUK’s monthly timber import statistics naturally focus on the ‘big
picture’ for the main timber and panel products, the latest statistics do
highlight some further movement that we believe is of note.
Housing starts in England in Q1 2024 were 39% below Q1 2023, following on
from a 50% reduction in Q4 2023 over Q4 2022; a fall that will naturally impact
the demand for timber.
We have also seen timber imports of softwoods from Norway grow significantly
during 2024 – up 14% despite overall softwood imports being 4.5% lower. Norway
exports both sawn and planed pine and spruce to the UK and, while sawn spruce
remains the largest product by volume, the driver of growth in 2024 has been
Planed Spruce. At nearly 18,000m3, volumes have almost doubled (+
98%) compared to last year.
Comparing tropical hardwood imports for the first four months of each of the
last three years also reveals strong growth from the Congo Republic. A near
doubling of share to account for 26% of tropical hardwoods resulted from an 18%
growth in 2024 to date, driven mainly largely by a 40% increase in sawn
Sapelli.
Romanian Oak has been gaining favour among UK hardwood importers for a
number of years, but in 2024 significantly higher quantities of Sawn Beech have
propelled Romania’s share of temperate hardwoods into double figures. A tiny
volume imported in the early months of 2023 has increased to more than 4,500m3
in 2024 to date, enabling Romania to account for 40% of the UK’s beech imports.
Spain is also regular supplier of many types of particleboard products to
the UK, with the highest volumes seen in standard unworked varieties and
melamine-faced chipboards. In the first four months of 2024 all particleboard
imports were 3% lower than seen last year, but Spain has increased its supply
by 110% and more than doubled its share of all imported particleboard, with a
near threefold increase in standard unworked particleboards.
TDUK Head of Technical and Trade,
Nick Boulton, said: “Although
overall import volumes remain below those in 2023, it’s encouraging to see the
deficit continuing to fall, with all changes in volume imports now down to
single figures. The UK’s poor overall economic performance during Q1 of 2024,
and further falls in housebuilding starts, have naturally had an impact, as
have the continuing uncertainty and low consumer confidence that always impacts
on the housing market and the important RMI sector.
“However, now the General Election is
over and we have a new Government, the timber industry must unite and continue
to call for the much-needed investment the construction industry needs in order
to return to growth.
“It is encouraging to hear that new
Chancellor Rachel Reeves is already signalling the need for investment in
construction and infrastructure to help stimulate economic growth, but time
will tell whether this new Government will be able to drive through this
much-needed investment. TDUK will continue to lobby and help the new
Government understand why timber is such an important material to help the UK
achieve its construction and net zero targets.”
