UK Prices for Imported Softwood Lumber Rise by up to POUND20/M3 for Exchange-Rate Reasons

In the last few months, UK prices for imported softwood lumber have risen by up to £20/m3 for exchange-rate reasons. The strength of the British pound against the relevant currencies has decreased considerably since March 2012. The value of the pound has fallen by 8% against the Swedish krona, for example. The loss in value against the euro and US dollar amounts to 6% and 4.5% respectively. Shippers are also calling for more price increases to compensate for the persistently high log costs. Whilst suppliers have been reticent about price increases in the last few months, buyers are gradually coming to terms with price increases in order to assure supplies of the higher-quality assortments when the anticipated growth in demand occurs this spring. Availability is low in British port terminals at the moment.