Year-on-Year
Following a relatively buoyant July, sales fell substantially in August year-on-year, before recovering in September. Total builders’ merchants’ value sales in Q3 2019 were down by 0.8% against the same period last year. The adjusted figure, which takes into account the difference in trading days, was down by 2.3% compared with Q3 2018.
Value sales of heavy building materials (the largest category) declined marginally by 0.4% year-on-year, while timber and joinery sales were down by 4.7% over the same period. The kitchens and bathrooms category was among the strongest, with growth of 3.2% in Q3.
Quarter-on-Quarter
Compared with Q2 2019, total builders’ merchants’ sales were up marginally, by 0.2%. However, when adjusted for the four additional trading days in Q3, the figures showed a decline in sales of 6%. Merchants’ sales of both heavy building materials (-5.5%) and timber and joinery (-6.5%) fell significantly quarter-on-quarter.
Index
The Q3 total BMBI index was 123.1, with the index for timber and joinery products marginally lower at 122.4, following a weaker performance in this category during Q3.
“The continued political and economic uncertainty led to a weakening in demand for timber and panel products in Q3 2019 despite the good weather,” said Nigel Cox, managing director of Timbmet and BMBI’s expert for timber and panel products. “The extended time period for Brexit has allowed distributors to plan for all eventualities and therefore product availability shouldn’t be a concern.
“Hardwood timber supply of the major species is generally good, with stable pricing, although exchange rate fluctuations remain a concern. The market is still being influenced by trade tariff exchanges between China and the US, which are weakening trade. It’s noticeable that demand from China has softened, resulting in material becoming more readily available. The reduction from China in its demand for red oak means there is also a good supply of this wood at an attractive price point. Historically used for internal joinery and mouldings, the demand for red oak has been increasing now that the material is easier to supply.
“MDF and OSB availability is still good and this position is expected to continue throughout the fourth quarter. The same applies for plywood and decorative boards although buyers should be aware that a number of manufacturers will be refreshing their colour ranges over the next two quarters.”
