Wood-link - Market Report December 2001
As the year has progressed, all market sectors have become increasingly difficult, with particular problems in the board industry. Competeition from imported material continues to place the home market under considerable pressure. General economic growth has slowed throughout the summer and this has fed directly through to the forest products industry.
Demand for sawlogs is reasonable, but has fallen back from the peaks achieved earlier in the year. Sawmills have seen a series of co-product price reductions which in turn has led to a fall in sawlog value.
Pallet and Red log markets remain depressed. Whilst prices remain low it is still possible to move significant volumes. Welcome news for this sector has been the successful commissioning of both Forest Garden and James Jones new mills at Lockerbie.
The fencing market has suffered considerably due to FMD. However, some slight improvement has occurred since the summer holidays and this should continue into the spring.
The combination of a strong pound, and increased use of recycled fibre has led to major challenges in the marketing of small roundwood. There is little doubt that not only is recycled fibre here to stay but that its usage will increase as further environmental taxes are levied.
Whilst the overall picture is not as positive as any of us would like, Euroforest, through its long term marketing strategy, continues to be successful in placing large volumes of timber with the forest products industry. In particular, Euroforest are now involved in large scale export of spruce pulp which will alleviate much of the difficulty in marketing small roundwood.
It is important that woodland
owners maintain faith with the industry by continuing to market their timber.
We would urge all owners to contact us for up to date market information,
and valuation of potential parcels.
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