Encouraging Signs in Softwood and Engineered Wood Imports

The UK timber import market showed a mixed yet promising picture during the third quarter of 2024. Softwood imports rose by 1% compared to Q3 2023, while OSB (Oriented Strand Board) and Engineered Wood Products (EWP) also posted growth. However, these gains were offset by notable declines in other categories, including hardwood plywood and MDF. Overall, the UK timber import deficit for Q3 2024 stood at 1.2%.

In a broader context, UK timber imports for the first nine months of 2024 followed a similar trajectory to the same period in 2023, with one exception—March 2024. That month’s significant dip accounted for much of the 2.9% cumulative volume reduction in the first three quarters of the year. Softwood, one of the key contributors to UK imports, experienced a 1.7% drop in solid wood imports, while panel products saw a larger 5.2% decline during this period.

Sourcing Trends: Shift Beyond Traditional Exporters

Interestingly, a notable shift occurred in sourcing patterns during 2024. While Sweden, Latvia, Finland, Germany, and the Irish Republic remained the UK’s primary softwood suppliers, accounting for over 90% of softwood imports, their collective contribution dropped by 3% compared to 2023. In contrast, imports from non-traditional suppliers rose by an impressive 18%, highlighting efforts to diversify supply chains.

Softwood supplies from these top five countries decreased by 120,000m³, whereas imports from other nations grew by 60,000m³. This shift suggests importers may be exploring new markets to ensure resilience amid global supply chain challenges.

Pricing Stabilizes After Two Decades of Volatility

One of the significant takeaways for 2024 has been the stabilization of timber prices. Between January and September, average prices for timber and panel products edged up slightly, signaling the end of the prolonged price volatility seen from 2000 to 2023. For softwood specifically, the average import price fell marginally to £254/m³ for the first nine months of 2024, down from £258/m³ during the same period a year earlier.

Despite this overall stabilization, the value of softwood imports was 2.7% lower than in 2023. The decline was most pronounced in sawn goods, which saw a 4.3% drop in value. Planed softwood experienced a minor 1.1% reduction.

Tropical and Temperate Hardwood Imports Face Challenges

Tropical hardwood imports declined significantly in the first nine months of 2024, falling by roughly 6,000m³ compared to the previous year. Cameroon accounted for the majority of this reduction, while Malaysia and the Democratic Republic of Congo also posted decreased export volumes to the UK. However, some growth in this segment came from the Congo Republic and Poland, which increased their export volumes by 2,000m³ and 3,000m³, respectively.

Temperate hardwood imports similarly dipped during this period, with volumes from major suppliers like the USA, Germany, and Croatia decreasing by around 6,000m³ collectively. Conversely, imports from France and Romania bucked this trend, posting increases that raised France’s supply share to 22% of all temperate hardwood species imported to the UK. Other countries, such as Poland, Canada, Lithuania, and Italy, also modestly expanded their supply volumes.

Expert Opinion on Future Outlook

Nick Boulton, Head of Technical and Trade at Timber Development UK, expressed cautious optimism for the future. “It’s encouraging to see prices continuing to stabilize, albeit at a low level, and the overall import deficit shrink to just 1.2%. However, challenges loom on the horizon, particularly regarding softwood log availability and low inventory levels.”

He emphasized the importance of timber within the built environment as a sustainable and low-carbon material. “Timber should not be treated as a commodity product in terms of pricing. Its intrinsic value to the journey towards net zero needs to be acknowledged to help rebuild a resilient supply chain.”

The Path Ahead

While 2024 has brought welcomed stability in pricing and highlighted trends toward diversified sourcing, challenges connected with supply chain bottlenecks and construction demand remain. As the housing and renovation markets pick up, it will become increasingly vital for timber buyers to adopt long-term strategies to counter potential pressures on supply, ensuring that the industry continues to meet both economic and environmental objectives.