Softwood Update: Weak markets and price pressures persist

The Timber Trades Journal
July 1, 2024
Category: Finance & Economics
Region: International

UK — There was an expectation in the trade that once warmer and dryer conditions prevailed in May and June, demand would strengthen and engender some degree of confidence among merchants and importers. In reality, the level of demand showed little sign of any upswing and a degree of panic worked its way back up the supply chain. …This current trend of uncertain demand and reducing prices has masked some fundamental issues in the supply chain lingering in the background. Log costs and production costs are increasing in Scandinavia while in Latvia there is a current moratorium in place prohibiting the felling of spruce trees due to plant health issues. …This challenging economic backdrop has made softwood buyers extremely cautious as far as the forward market is concerned, with many keeping purchases “just in time” and on a hand-to-mouth basis.

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