The timber market has undergone the biggest period of change in decades according to the Summer 2018 Timber Price Database from Property Consultants Bidwells.
The report, which looks at the standing conifer timber prices achieved in the six months to September 2017, indicates the timber market has undergone perhaps the biggest period of change seen in decades.
Returns from 79 transactions totalling over 742,000 cubic metres of coniferous timber, with a value to the grower in excess of £28 million have been received and indicate on average significant price rises over the period.
Bidwell’s last commentary in December 2017 said there were “current reports of supply shortages and increasing upwards pressure on standing sales values” but the latest set of results for October 2017 – March 2018 has clearly demonstrated that this was something of an understatement. All signals are pointing towards prices having continued to increase since the end of March and there are still considerable supply pressures on timber processors.
Raymond Henderson, forestry partner at Bidwells said: “It is always difficult to predict the future, given the influence which global demand and exchange rates have on domestic timber values, but the overall macro-economic situation of increasing demand and tightening supplies suggests no reason to suspect a weakening of prices over the short term.
“Good news for timber growers then, but possibly less so for many processors, and given the closely linked health dependence of each sector on the other, it can be in no-one’s best interests to see unsustainably high prices. The hope is therefore that what we have been seeing is a re-basing of timber values at levels which can be maintained in the long term.”
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