Falls in softwood, hardwood and plywood imports account for a 6% drop in volumes during January 2024, despite 2023’s figures finishing just 2% down on the previous 12 months, according to the latest TDUK statistics.
Timber import volumes started 2024 around 6% lower in January than the market saw in January 2023, down by around 45,000m3. Softwood, hardwood and plywood imports were all lower than in January 2023, but particleboard, engineered wood, OSB and MDF products all saw imports increase slightly.
This is despite the volumes of the main imported timber and panel products ending 2023 just 2.2% down on the previous 12 months after rallying towards the end of the year. In fact, despite the challenging end to 2023 seen across the construction sector, timber import volumes for the year were actually higher in three of the six product groups.
After a slow start, softwood imports gained impetus in the second half of the year, finishing 2023 1% higher. Hardwood, plywood, particleboard and engineered wood product imports were all lower in 2023, but OSB volumes were significantly higher (up 19.4%) and MDF volumes were 2.2% higher than in 2022.
Crucially, 2023 saw greater stability return to the market, with substantially less volatility in imports compared to each of the four quarters of 2020, 2021 and 2022, during which time the timber market fluctuated significantly.
TDUK’s head of technical and trade, Nick Boulton said: “The ability of timber products to weather the instability and adverse influences of the first three years of the 2020’s and emerge with virtually all products remaining on a positive growth path is a testament to the strength and resilience of the UK timber industry.”
Don’t be discouraged despite January fall
Breaking the January 2024 import figures down by timber product type, softwoods saw a 9.6% drop during the month, with import values also 15% lower in January 2024 than they were in January 2023. This was caused by the volume decline, coupled with a 5.6% fall in the average price of a basket of softwood products, down from £256m3 to £241m3.
Hardwood imports experienced a 13.8% fall, largely due to tropical hardwood imports being down by around 3,000m3. There were signs of growth, however. Volumes of temperate hardwoods increased 2% and, while overall plywood imports were also down 6%, hardwood plywood volumes rose 36%.
Particleboard imports grew 3.4% growth, while OSB and MDF imports were up 6% and 4.1% respectively. Finally, 12.8% growth in engineered wood product import volumes rounds out the varied January 2024 results.
The slight fall in timber import figures seen in January 2024 might be disappointing, but Nick has warned the industry not to be discouraged at this early stage, saying: “It’s always very difficult to accurately assess import and export trends at the start of a year, because with just one month’s data available, small changes from last year can result in significant shifts in performance. A truer reflection of the sector’s product performance will be visible when the Q1 figures are available, but the 6% reduction we’ve seen in January’s figures does confirm the greater stability in the market when compared to the high increases and decreases experienced from 2020 to the end of 2022.
“We also need to bear in mind the latest housing start data, which indicates that while housing starts and completions held up well in 2021 and 2022, data for the full 2023 year is likely to be substantially lower once it is made available. Housing starts in England during Q4 2023, for example, were 51% below Q4 2022, on the back of a similar 52% reduction in Q3 2023 over Q3 2022. Given the importance of the newbuild housing sector to the timber industry, this is likely to indicate we can expect continuing challenges in the short term, and likely until after the coming General Election.
“However, despite the volatility of recent years and the subdued start to 2024, the longer-term trend of UK timber and panel product imports remains upward, and the government’s renewed focus on timber as a core construction material suggests that the future continues to look brighter.”
TDUK members can sign in and read the full report, as well as viewing regular monthly import statistics at: www.timberdevelopment.uk
Source: Timber Trader UK Issue 24 (Spring 24) by Radar Communications – Issuu
