The president of The Timber Trade Federation has called on suppliers to the UK market not to risk a slide in timber prices through over-production.
Kevin Hayes made his appeal at the North West Timber Trade Association in Liverpool last week.
In response to the global economic downturn and falling international demand, he told the audience of over 190, major timber producing countries have been cutting output worldwide.
“The Finns will tell you they’ve reduced production by over 20%, the Swedes are close to 10% cutbacks and in the Baltics it’s more like 30-40% down,” he said. “Malaysian timber exports are at a 28-year low and Indonesian plywood exports are forecast to be 40% down in 2009.”
UK stocks, he added, were also low as companies “fight to reduce capital employed and keep those accountants and bankers off our backs”.
Against this background what the industry needed was steady, predictable pricing and not suppliers suddenly raising production to capitalise on price rises that might result from tight supply.
“I am not expecting great things, but if we can get a little consistent demand going, the best we can hope for is some stability to see us through the rest of the year,” said Mr Hayes. “My fear is, with stocks low and market supply tightening, prices may start to increase and producers start reinstating those extra shifts, the market is oversupplied and prices head south again. I call on all producers and their agents, please act responsibly. It comes back to marketing our products rather than flogging them as commodities.”
Outgoing NWTTA president Eddy Nichol said that, despite the market downturn, the organisation had a very active year in which it had upgraded its website and successfully reinvented its regular meetings as sales-based education and training events for members.
Mr Nichol’s successor is Jonathan Grant, managing director of W Howard. He takes over the presidency in May.
