UK softwood traders experienced strong demand in April and May 2025, following a stable first quarter with imports up nearly 2% year-on-year. However, supply issues arose as several Nordic producers faced shortages of spruce logs for structural grades, leading to increased use of pine and reduced redwood availability for some mills.
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Prices rose in Q2 across the UK, Europe, and the US due to solid demand and supply constraints. Yet UK merchants remained cautious, avoiding long-term commitments amid market uncertainty. By June, demand for structural softwood notably declined, causing prices to flatten and fall as merchants and distributors reacted to a slowdown.
Unexpected delays in new building projects, including postponed starts and planning consent challenges, contributed to reduced demand. Labour shortages and infrastructure limitations also hindered housing developments, stalling the government's mass building plans.
Industry efforts promoting timber as a low-carbon building material have increased specification interest but often remain unconverted into actual projects. The use of timber frames is growing, yet further momentum is required to stabilise the market.
Sweden, the UK's largest softwood supplier, faces industrial strikes affecting logistics at ferry ports, potentially prompting importers to shift shipments to unaffected ports.
The industry hopes that summer production slowdowns will reduce supply surpluses and support prices moving forward.
Source: www.globalwood.org
