Timber prices have remained stable at the comparatively high levels which have been experienced since late 2017, according to the latest report from Bidwells.
The property consultants’ Summer 2019 Timber Price Database looks at the standing conifer timber prices achieved covering October 2018 to 31 March 2019.
Following dramatic increases in standing timber values seen between late 2017 and early 2018, the report results from sales suggest that prices remained fairly stable.
The latest results, however, are based on returns from only 59 transactions, totalling just over 206,000 cubic metres of timber with a standing value to the grower of approximately £8.1 million. Despite being a small sample, it was clear during the reporting period that demand from processers remained high as did standing prices paid to growers.
Windblow and the high incidence of timber affected by bark beetles on Continental Europe, possibly as a result of the hot, dry conditions of summer 2018, has produced an excess of imported timber looking for a home.
UK sawmillers, in particular, have come under pressure in terms of both price and demand for their finished products in light of this flood of imports, which has inevitably led to lower demand and price for homegrown standing timber.
Raymond Henderson, forestry partner at Bidwells said: “This effect is not demonstrated in these results and should be a temporary phenomenon until European timber harvesting rates return to a more normal footing. Fundamentals of the UK industry remain sound and should (despite the ongoing Brexit situation) give all connected with timber real confidence for the future.”