Timber prices have recovered well beyond the forecast of the UK’s largest timber harvester UPM Tilhill, the company says in its latest bulletin.
“The gap remains favourable between the imported sawn price and domestic sawn prices, enabling domestic sawmills to increase their market share,” said UPM Tilhill operations director Peter Whitfield.
The weak pound has also created a renewed interest in log exports from the west coast of Scotland to both Ireland and more recently Germany, it said.
“There is no doubt that this demand has contributed to the tightening supply position for sawmills in Scotland. Exports of small roundwood have continued both to Scandinavia and to Continental Europe at a similar level to 2009.”
But despite the price improvement and better conditions for domestic processors, UPM Tilhill says there are still serious concerns about the state of the economy.
“There is no doubt that the forest industry is a resilient one and demand for wood will continue to grow, so we need to ensure that there is a committed supplier base to provide the timber that the UK’s forests have the potential to produce.”
For a copy of the bulletin download at www.upm-tilhill.com
