Summary
• Canadian sawn wood imports remain subdued.
• Several hardwood species now represent good value.
• Carcassing imports have slowed to a trickle of CLS.
• Cedar continues to be specified for prestige projects.

The UK has long regarded Canada as a dependable supplier of high quality timber, and today continues to appreciate Canada as a source of structural softwoods, speciality softwoods, temperate hardwoods and value-added products that include wood floors, mouldings, furniture components and even factory-built timber frame houses. Canada’s forest are 94% publicly owned, and increasingly third party certified, guaranteeing sawmillers a continuous and sustainable supply of raw materials.

Current conditions are subduing all activities associated with the construction sector, and the timber industry and imports from Canada are not exempt. Furthermore, upturn is not expected beyond the second half of 2010, by which time the trade landscape may look very different.

Canadian hardwood suppliers are seeing UK buyers become more inclined to lower their stock levels and reduce their exposure to financial risk, resulting in subdued levels of forward purchasing. Under current circumstances it has become difficult to meaningfully assess the market for Canadian hardwood species such as ash, cherry, birch, maple, and red oak particularly at a time when sales of white oak predominate. Nevertheless, hardwood traders reported reasonable sales at the beginning of 2009, and as UK stocks run down in the lead-up to Easter there are expectations that some new orders will be placed and perhaps direction re-established.

Attractive option

Reduced prices of North America hardwoods, increasingly available freight transport, and the strength of the US dollar are making Canada a more attractive source. Canadian species represent exceptionally good value now, and species such as ash and red oak appear well placed to satisfy the demand for woods of some character in appearance. Maple is renowned for its qualities for flooring, and its return to fashion status is long overdue.

Conditions in the UK hardwood market appear to be favouring smaller companies that can add value, specialise, and be flexible enough to meet customer requirements. Canadian partners appear well-suited to supplying such companies with shared appreciation of good quality material, and dependency on reliability of supply and flexibility. One agent commented that he is able to purchase mixed containers from Québec, for delivery within two to three weeks (or sometimes fewer), replenishing stocks of particular hardwood dimensions on a just-in-time basis. Québec company DV Hardwoods is able to tailor its products to meet the highest quality requirements, mix loads, sell in either Canadian or US dollars, deliver to the UK in approximately 10-12 days, and is on the point of supplying FSC-labelled product.

Exports of spruce-pine-fir to the UK are minimal currently, with only small quantities of CLS being shipped here from Canada’s west coast and Québec owing to low market prices and poor demand. Benefit could still arise from the reallocation of Canadian MSR grades into higher European strength-classes. Eastern white pine continues to arrive in the UK, for furniture mainly, but activity has been adversely affected by economic conditions.

Western red cedar

Trade in western red cedar remained strong up until the second half of 2008, when the effects of the construction downturn began to be felt. However, the species’ status as top quality material has ensured continued turnover and sales, it is readily available from stocks in the UK, and architects continue to specify its use in prestige projects, public buildings and social housing. Self-builders, inspired by architects’ choice of western red cedar, are using the wood in homebuilding, renovation and landscaping. While the cost of western red cedar has continued to rise with the declining value of the pound, cheaper eastern white cedar is occupying a niche where smaller dimensions are required. The light-coloured wood is also durable, making it ideal for outdoor applications such as roof shingles and play equipment.

Canada is well positioned to supply the UK when the economy begins to pick up again, being well equipped to supply niche markets – such as softwood for timber frame construction, painted and specialist softwoods for cladding and furniture, and high-quality temperate hardwoods produced to specific customer requirements.

Canada will continue to service the UK market and remain an important player amongst its portfolio of suppliers, ensuring species diversity and continued supply. Several of Canada’s major timber trade associations are represented by Canada Wood’s UK office, which works with trade partners, offers information materials, advice, and a point of access to Canadian exporters.