May 2024 was the best month of 2024
to-date for timber import volumes, according to the latest Timber Development
UK (TDUK) statistics.
Although volumes in May 2024 haven’t quite matched the high point of
969,000m3 seen in May 2023, at 897,000m3 it remains the
best month of 2024 so far. Covering the period January to May, volumes are
approximately 4% down on those seen in 2023.
For May 2024 specifically, volumes were down 7% on those seen in May 2023,
following a 5% increase on 2023 levels enjoyed during April.
Overall, timber import volumes have weakened over the last two years. A
sluggish UK economy and a reduction in construction output have contributed to
these weaker volumes, but the long-term trend for timber and panel imports
remains positive.
The overall performance of UK imports is weighted heavily towards softwood
imports, which account for 62% of all volumes. Softwood imports were 4% lower,
but some products have seen import levels grow. Planed spruce imports (45% of
all softwood imports) were 3% higher, driven by good growth from Sweden (+4%),
Latvia (+17%), Ireland (+18%) and Norway (+104%). Price reductions of between
5% and 15% have contributed to growth from Latvia, Ireland and Norway, while
Sweden has achieved good growth while maintaining prices.
Hardwood imports in the first five months of 2024, meanwhile, were around
20,000m3 lower than during the same period in 2023. Three-quarters
of this reduction is due to lower volumes from Latvia and the USA. France,
Estonia, Romania, Cameroon and the Congo Republic have all increased their
volumes exported to the UK in 2024 to date, albeit by relatively small amounts.
In the first five months of 2024, tropical hardwood imports were a little
less than 3% below the volume over the same period in 2023 – amounting to
around 1,000m3. The largest contributors to this reduction were the
Democratic Republic of the Congo and Malaysia.
Although timber and panel imports remained subdued, some specific types of
timber and panels have seen outstanding performance.
Twenty years ago, China held a 25% share of supply of hardwood plywood
imports. In 2024 to date the country has reached a 70% share, with a 6%
increase to May 2024. The 3% total increase in hardwood plywood in 2024 has
mostly come from China. According to HMRC statistics, the composition of this
growth in 2024 has varied widely. Compared to 2023, the fall in birch-faced
plywood has been virtually matched by the rise in eucalyptus-faced plywood.
Consequently, the 6% growth in hardwood plywood has been driven by the
increases in eucalyptus-faced (+228%) and other non-coniferous-faced varieties
(+24%).
Particleboard imports to May 2024 were just over 2% down on the same period
in 2023. However, imports of the standard unworked variety of particleboard,
accounting for 39% of all particleboard imports, have grown by 13% in 2024 so
far. This growth, equal to around 11,000m3, was mostly achieved
through higher volumes from Belgium, Portugal and especially, Spain. The
increases from Portugal and Spain, from relatively low bases, were accompanied
by average price drops of 27% and 33% respectively.
MDF volumes for 2024 are currently 4% below the same period in 2023. Within
the many types of MDF, the unworked, medium-thickness variety, which accounted
for 12% of all MDF imports in 2024 to date (7% in 2023), grew by a substantial
60%. This represented around 15,000m3 and was driven mostly by
increases from China (>1,000%) and Germany, plus increases from Ireland and
Portugal. Compared to 2023, average prices have reduced by 30% (to £385/m3)
but remain at a premium of 25% to those from China.
TDUK Head of Technical and Trade,
Nick Boulton, said: “The
latest construction output data from the Office for National Statistics (ONS)
shows that outputs fell by 0.2% in May, continuing the challenging start to
2024. The sluggish construction sector as a whole has clearly had an impact on
timber imports and sales to date this year, but it’s reassuring to see that
certain product types, such as planed spruce, standard particleboard, hardwood
plywood and some grades of MDF have seen growth this year.
“It’s still too early days in the
current Government to get any real sense of how their plans for the housebuilding sector will
have a tangible impact on the timber market, but clearly any growth in UK
construction is encouraging, and they have made their plans to boost
housebuilding and construction clear already. We look forward to working with
Ministers to continue the Timber in Construction Roadmap and the nation’s move
towards a more sustainable built environment.”
