TTF Market Statement – Jul 2021

Date Published

21 July 2021

Category

Author

TDUK
Summary

A joint market statement from the Confederation of Timber Industries (CTI) and Swedish Wood points to a likely easing of supply tension in the timber market as the pandemic eases.

Key Information

With timber prices having accelerated in 2021 amidst skyrocketing demand, there has been concern how this will affect the thousands of businesses which timber supports.

Structural softwood a product with significant price rises, is an essential material to timber frame, a commonly used low-carbon modern method of construction using high-tech manufacturing.

By partnering with Swedish Wood, who represent the largest exporters of structural softwood to the UK, the CTI is seeking to provide a complete picture from forest through to end users.

Drawing on a wide array of data (cited in the report), the market statement seeks to help generate a more nuanced understanding of the relationship between supply, demand, and prices in timber.

Key insights from the report include:

  • Demand is on the rise: Overall construction activity is expanding at the fastest pace since June 1997. Timber and joinery sales alone were up 30.5% in Q1 2020 on Q1 2019, and construction output set to grow 12.9% in 2021.
  • Record amounts of softwood are being imported: The cumulative volume of softwood imported into the UK between January and April was 2,678,000m3. This was a 50.6% increase on 2020 and a 17.2% increase on 2019.
  • Timber frame is projected for significant growth: While timber frame may see a short-term impact from the current market tension, the outlook remains strong with both the market size and share to grow for timber frame.
  • It is highly likely the market will soon stabilize: Market analysis shows the current price increases are far outside the bounds of normal levels over the past 13 years, suggesting a price correction is very likely to follow.

Case studies

The Savill Building is a new visitor centre for the Great Park, the historic 14,000 acre (5,665ha) forest and woodland park to the south of Windsor.

Zaha Hadid Architects has designed a new building for St Antony’s College, Oxford, a beautifully crafted structure with a sinuous, shimmering stainless steel façade, positioned with great care alongside its period neighbours.