APRIL 2018
Cont'd from Page 23
Long-term supply contracts between Forest Enterprise and sawmills were a promising development, he said, and similar arrangements with the private sector could work well to secure supplies into the future. Vertical integration between sawmilling and forest management companies is also a positive trend.
He concluded by saying that ongoing coverage of the pricing issue meant in Scotland new plantings of timber have begun to climb again – by as much as 9,000 hectares a year; a trend he hoped would spread to England as well.
Stuart Hex, general secretary of TIMCON, said: “Recent Pőyry data shows a significant increase in the price of timber. The Markit/CIPS report released at the beginning of March also shows pallet timber has increased in price for the 20th consecutive month. Meanwhile, anecdotal evidence from the pallet and packaging industry suggests the availability of smaller logs is extremely tight.
“The open forum at TIMCON’s general meeting was an essential exchange of industry views on the current situation. There was a consensus that there is sufficient timber supply to service the market, but that we may have to adjust to structural pricing changes to ensure these short-term issues are overcome.”