Mr Whitfield, speaking in the company’s news bulletin, said UK processors may be helped because traditional UK imported timber suppliers – such as Sweden and Finland – have developed other markets in North Africa and Japan which may be more attractive to them in the long term.
He said it was difficult to estimate the impacts of problems in the Eurozone, but the historical evidence was a strengthening pound led to a drop in sawn timber prices. Mr Whitfield described UK processors’ 41% market share of the UK sawn timber market as very significant.
UPM Tilhill’s bulletin says while biomass remains both a threat and an opportunity to the timber industry, biomass demand growth forecasts made around six years ago had not yet materialised.
“It is likely that the biggest material impact on biomass consumption will come from Renewable Heat Incentive-driven demand which will be local and smaller scale,” added Mr Whitfield.
“The impact of this is uncertain but will become clearer over the next two to three years.”
