Timber Development UK has released its latest quarterly market statement, outlining the supply, demand and price trends seen in early 2022.
The market statement provides a detailed analysis of the first quarter of 2022, looking at import and price statistics as well as the early market impacts of the Russia-Ukraine conflict. Here, the organisation says the data shows that the timber industry has responded to the Russia-Ukraine conflict by following sanctions and significantly reducing imports across all the main Russian import categories.
Future trends and predictions are also analysed in the statement, with construction output in key sectors such as private housing RM&I “likely to decline as the cost-of-living crisis begins to impact consumers”.
The report is split into three sections – supply, demand and price – and Nick Boulton, TDUK Head of Technical and Trade, said: “This market statement provides clarity on an interesting start to the year for the timber industry, as well as what to expect as the year progresses.
“The invasion of Ukraine by Russia has begun to hit home, as the three key economic impacts of a long war between Russia and Ukraine – including on the supply of raw materials, the price of energy, and consumer confidence and spending – begin to be seen.
“The conflict, coupled with post-pandemic economic recovery, paints a gloomy picture for Q3 and Q4 2022, with inflation, high-interest rates and low consumer confidence likely to impact key construction sectors.”
Nick continued: “Despite the negative macroeconomic picture, the timber industry remains strong. The competitive advantage of timber products is that they are relatively low-energy to produce, particularly when compared to high-energy, and carbon-intensive products such as cement or steel. With a rise in energy prices among the most significant impacts of the Ukraine crisis, these products are likely to face significant inflation.”
The full market statement can be accessed via the TTF website here.