Timber Trades Journal Softwood Update: Market falls short of expectations

By Stephen Powney
The Timber Trades Journal
November 14, 2024
Category: Finance & Economics
Region: International

When it comes to trading, this year’s UK softwood market fell far short of most importers and merchants’ expectations. With the year-end in sight, the current mood among UK distributors is one of resignation that an upturn is unlikely to materialise before the New Year. Taking all softwood product groups into consideration, demand for construction grades in particular fell away, steeply declining since July. C24 specifications have been the most affected, engendering fierce competition between wholesalers that forced prices down on virtually a monthly basis. For those sellers driven by volume targets and operating from quayside facilities, weak demand created lower stock-turn rates, and at inventory-linked ports, quay rental charges threatened to add to costs creating additional pressure on sellers to slash prices and force stock into the market. …In the UK, the weak demand for structural wood has been masking the fact that there are shortages in the supply chain.

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