Sweden’s wood products industry is of massive importance to the UK. A look at import stats, whether it is for construction or joinery timber, reveals the historic link and sheer size of the business between Swedish sawmills and UK buyers.
Mikael Eliasson, director of wood promotional organisation Swedish Wood, dropped into London recently to give TTJ his thoughts on the special relationship, global demand for wood and recent initiatives by Sweden’s timber sector.
The work of Swedish Wood over many years to increase the use of wood in the UK is well documented.
It campaigns in partnership with UK timber organisations – it is a major backer of Wood for Good and the Wood Window Alliance for instance – have helped change attitudes to wood among the general public.
Activities include a drive to build back up lost volumes for flooring and interior wall products in the UK, while it has a prominent role in UK industry web-based training portal Wood Campus, which gives a wealth of training information for builders merchants, tradesmen and consumers.
Global Markets
Mr Eliasson reassured that the special relationship between the UK and Sweden was still very much alive, despite growing global demand and new markets rising. “Our forecast is that there will be more or less the same volumes coming to the UK [in 2018],” he said.
“If there is bigger demand elsewhere it will maybe affect the prices and cause a squeeze on demand.”
“Sweden has almost 50% of the UK softwood import market. The UK market is a focus market for Sweden. In all my years it has been like that. We will never let this market down.”
Mr Eliasson emphasised Sweden’s responsibility to supply the UK importers, distribution sector, construction and joinery industries.
Brexit is another factor in the market, he conceded, though he said there were still many unknowns, with the British government’s position still not clear. “It’s not a tragedy. There may be higher costs as a result, but hopefully there will be no tariffs. We are for free trade and the market economy.”
He said pseudo tariffs were already in existence in many other markets.
Growing Global Demand
But of course Swedish Wood is also involved in developing other markets.
“The Swedish timber sector is a modern industry supplying a global market,” he said. Sweden has six markets each taking more than 1 million m3 of its wood, with China joining this club for the first time in 2017. “We believe China will exceed the US as the largest importer of softwood within a couple of years,” he said.
“There has been a dramatic increase in [shipments to China] in recent years. “Even if China is just increasing a very small amount then it is a still very large volume.”
He pointed out that impending new Chinese build standards allowing for higher rise timber buildings would be another market dynamic, giving possibilities for CLT exports.
A CLT handbook has been translated for the Chinese market.
India and Vietnam also emerged as serious softwood importers in 2017.
Swedish Wood was due to have a stand at India Wood 2018 in Bangalore during March with 10 members present.
Swedish softwood exports to the US were 250,000m3 in 2016, with 2017 figures expected to be double that.
“That doubling still only represents 3-4% of Swedish volumes but of course everything else is on the way up as well.
“So it’s a very positive picture for sawmilling. We are lowering our inventories and we have not increased production.” Mr Eliasson said if demand for Swedish softwood contined to increase significantly there would be a question of whether the industry could increase production sufficiently, with several sawmills having closed down over recent years and the industry closer to its annual allowable cut.
Timber Construction and Well-Being
“Timber frame construction is taking market share and cross-laminated timber production capacity is increasing.
“There is huge interest from architects and designers in wood.”
Mr Eliasson also referenced the increasing recognition of the well-being benefits of wood, citing projects in Norway and Finland, with studies showing that post-operation recovery rates for patients are quicker where wood is used in health facilities.
“It’s a new and different aspect of sustainability.”
He said this aspect of the benefits of using wood products in projects needed to be targeted at architects.
“We can create a good environment and create a completely new industry.”
