Casualties in the softwood supply chain “can’t be too far away”, according to an agent at a meeting of the London and South East Timber Trade Association.
“It’s pretty grim,” he told the event in Tunbridge Wells. “Volumes and prices have fallen and sawmills are pretty much on the ropes.”
The agent also said banks were now calling the shots at the big Swedish mills. “Either the prices go up, or they [the mills] will go away.”
Several merchants reported business down 15% in January year-on-year, with snow worsening trade in February.
“There are a few sizeable enquiries out there,” said one major merchant. “But there are a lot of people tendering, including some importers who are getting into the merchant business. Margins are getting wiped out.”
Another agent said the good news was that prices had stopped falling.
“There’s evidence that Sweden has had enough of low prices and that they are trying to move prices up. Prices of Swedish softwood by the summer will be £4-5 more.”
Meanwhile, sales of lower priced laminated pine board were said to be booming.
