The Pressure on Prices for Imported Softwood Lumber Increased on The British Market

The pressure on prices for imported softwood lumber has increased on the British market in the last few weeks, against the background of low demand and inflated supply. Buyers are now voicing concerns that lumber prices might continue to fall over the next weeks. If this came true buyers would have to devalue their existing stocks. There is a strong reluctance to place orders at the moment, given the more than sufficient supply of all lumber grades. Business is typically characterised by orders at short notice and as needs dictate. Softwood lumber consumption in Britain still remains lower than before the onset of the global economic and financial crisis in the autumn of 2008. Where construction timber is concerned, the weak demand is due to the continuing weakness in the building sector. Business in packaging lumber had improved temporarily due to brisk export activities. However, the British industry’s export sales are now being hampered by adverse exchange rate trends, as the British pound has increased in value against the euro. As a result, demand for packaging lumber has nose-dived in recent weeks. Garden timber demand has also fallen off again since mid-year, after satisfactory business in the second quarter. The sales situation is unsatisfactory also where premium grades are concerned. A further seasonal decline in demand is now expected for the next few weeks. Source: euwid-wood-products.com