A good start to 2016 for timber sales, but will it continue?

July 14, 2016 - PRLog -- The Timber Bulletin explains that while prices were down during 2015 for small roundwood, logs and standing timber, the first half of 2016 has seen a rebound driven mostly by the sawn fencing market and the weakened sterling.

Peter Whitfield, Timber Operations Director, said: "The report clearly illustrates that the last year has been a turbulent one with many parts of our industry being negatively affected. However, it is not all doom and gloom; in the context of the global average, the UK has performed strongly and with exchange rates likely to be in our favour, it is forecast to continue to do so in comparison with other countries."

The vote to leave the EU and the potential impact of Brexit is also discussed. The report states that the vote has created uncertainty in the market but that the upside is that it is now more expensive to import timber which could provide a welcome boost for UK sawmilling. The sawmilling sector is however vulnerable to the economy and exchange rates. Fortunately, biomass and the panel sector are less exposed to economic uncertainty although biomass will be hit hard by the reforms to the Renewable Heat Initiative (RHI) targeting residential and small commercial installations.

Another concern is that insufficient trees are being planted to meet long-term demand. Figures show that the private sector is dominating supply at more than double the state sectors combined. A trend that is set to continue, but the forecast decline in availability of timberin the period 2027-31 is of concern to processors and growers alike.

To read the full copy of the report go to (www.tilhill.com/file-bank/Timber%20Bulletin%2016%20(LR).pdf)

Tilhill Forestry Ltd, a wholly owned subsidiary of the BSW Timber Group was established more than 65 years ago. It is a national company operating from a network of offices throughout the UK. The company provides a full range of consultancy and contracting services to the forest owner and forestry investor. Further information is available at www.tilhill.com

BSW is the most technologically advanced sawmill in the UK employing over 1200 people. The Company's roots date back to 1848, and with seven sawmills in the UK and one in Latvia, has a production capacity of more than 1.2 million m³ of sawn timber which is distributed throughout construction, fencing and landscape markets www.bsw.co.uk

Together, BSW and Tilhill Forestry form a strong partnership in the forest industry that will deliver quality from beginning to end - from creating new forests through to producing timber-end products.

ENDS

For further information contact Suzi Christie PR Consultant for Tilhill Forestry on 01435 830031 or e-mail suzi@blueberry-pr.co.uk