UK: Brexit deal may affect the dynamics of the softwood lumber market in 2019

Last week held a conference on the trade of pine wood, which is organized annually by the Trade Federation’s forests (Timber Trade Federation, TTF). Experts shared their views on the development of the coniferous wood market in the UK for the current year.

Imports of coniferous wood will increase. Such forecasts for 2019 made TTF. Imports of coniferous wood in the UK will grow by 1.7 % to 6,675 million m3, and consumption will increase by 2.7% to 10.27 million m3.

Statistics specialist of Timber Trends Nick Moore believes that 2019 will be the best year for the development of the softwood market, despite the current situation with Brexit.

But if the government of the United Kingdom does not sign the agreement or continues to delay the response, it will have a negative impact on the market situation, which will affect the forecasts.

However, when forecasting the situation on the market of coniferous sawn timber TTF took into account both the growth of housing construction by 2.4% and the growth of UK GDP by 1.4 % in 2019.

It is also expected that in 2019 the production of conifers in the UK will grow to 3.80 million m3, which is 4.1% more than last year.

In 2018, UK softwood imports rose to £1.4 billion, despite a 2.8% decline to 6.564 million m3 and a 2% decline in UK softwood production to 3.65 million m3 (2017: 3.73 million m3).
Marketing Director of the company Setra, Olle Berg noted that the coniferous wood market is balanced and there are good prospects for increasing the volume of wood consumption in the world market. He did not foresee any serious crises in the markets, even taking into account the situation with Brexit and possibly other changes in the world economy, as the events of 2007.

Setra believes the UK market is the most reliable in the coming years. In the UK, the construction of new houses, and there is a demand for wooden houses.

The Timber Trade Federation is the United Kingdom’s main timber supply chain body.

according to the materials of TTG