Latest TDUK figures show Q3 growth in softwood, OSB & EWP imports, despite overall market decline

Timber import volumes in Q3 2024 showed promising growth compared to the same period in 2023, particularly for softwood, oriented strand board (OSB), and engineered wood products (EWP). However, these gains were offset by declines in other segments of the market. Softwood imports rose by 1% year-on-year, and OSB and EWP also posted increases. Nevertheless, a 1.2% overall deficit was recorded due to significant reductions in imports of hardwood plywood and medium-density fibreboard (MDF).

The average prices of timber and panel products steadily increased during the first nine months of 2024, marking a departure from the prolonged period of price volatility experienced between 2000 and 2023.

2024 import trends 

During the first three quarters of 2024, imports of solid wood declined by 1.7%, and panel products fell by 5.2% compared to the same period in 2023. This pattern was consistent with trends observed in 2023, aside from a sharp dip in March 2024 that accounted for much of the 2.9% cumulative volume deficit.

The reduction in imports during this period was distributed fairly evenly across key timber and panel product categories.

Softwood import shifts

More than 90% of UK softwood imports traditionally come from Sweden, Latvia, Finland, Germany, and the Irish Republic. However, 2024 has seen an emerging trend of diversification, with increasing volumes sourced from outside this core group. While imports from the top five suppliers fell by 3% (approximately 120,000m³), volumes from other countries surged by 18% (around 60,000m³).

The total value of softwood imports declined by 2.7% in the first nine months of 2024 compared to the same period in 2023. Planed softwood values dipped by 1.1%, and sawn goods fell by 4.3%. The average price for softwood imports stood at £254/m³, slightly below the £258/m³ recorded in 2023.

Hardwood import dynamics

Tropical hardwood imports were approximately 6,000m³ lower in the first nine months of 2024 than in 2023. Cameroon accounted for most of this decline, with a reduction of nearly 5,000m³, while the Democratic Republic of Congo and Malaysia collectively supplied 4,000m³ less. On the other hand, the Congo Republic and Poland contributed to growth, increasing their volumes by 2,000m³ and 3,000m³, respectively.

Temperate hardwood imports also fell by 6,000m³ during this period. The USA led the decline, with Germany and Croatia contributing reductions of 2,500m³ each. However, France increased its share, supplying 22% of all temperate species, and Romania saw a 14% rise in volumes. Other countries, including Poland, Canada, Lithuania, and Italy, also recorded growth in their shipments.

Mixed hardwood imports experienced a 9% drop (approximately 8,000m³), with smaller supplying countries collectively recording a 33% decline. Interestingly, the top three suppliers saw a cumulative 2% increase in their volumes.

Market commentary

Nick Boulton, TDUK’s Head of Technical and Trade, highlighted the market’s complexities: “It’s encouraging to see prices stabilising, albeit at a low level, and the overall import deficit narrowing to just 1.2%. However, the timber industry faces significant challenges ahead, particularly regarding softwood log availability and low stock levels. While subdued construction demand has masked these issues, rising demand in the housing and RMI markets could amplify these pressures. Buyers should be cautious not to expect current stable price levels to persist indefinitely.

“Timber’s low-carbon and sustainability benefits mean it should not be treated as a commodity in terms of pricing. The built environment industry must acknowledge timber’s critical role in achieving net-zero goals. Recognising this intrinsic value is essential to helping the timber supply chain recover from recent uncertainties and build a resilient future.”

For further insights, TDUK members can access the full report on the TDUK website: www.timberdevelopment.uk.