The UK market for both softwoods and engineered wood products has been subdued in Q1 2026.

Merchant and distributor restocking in January generated volumes broadly in line with January 2025. However, follow-up demand was slower than expected, reflecting a cautious approach to stockholding.

Wet weather in February across the majority of England and Wales certainly weakened demand from the housebuilding sector and impacted the stock build of timber landscaping products in preparation for the outdoor season. Metsä Wood supported merchant customers by incentivising early stocking of timber landscaping products, to ensure they are well placed to service their customers when needed.

March brought further uncertainty with the conflict in Iran, and wider geopolitical and economic pressures compounding existing challenges around fuel, energy, borrowing costs, and consumer confidence. These factors are shaping activity in the housebuilding sector, prompting the Construction Products Association (CPA) to revise down its 2026 outlook. Its latest Spring forecast suggests a much more difficult year for construction, including a forecast decline in private housing output.

Against this backdrop, customers continue to manage stock carefully and seek value from their supply base. This is reflected in purchasing decisions, for example, forward sales of sawn timber products shifting towards landed ‘quay stocks’ as businesses seek greater flexibility in an uncertain market.

Inflationary pressures remain a key consideration across the supply chain, with many businesses facing higher costs. The timber market is affected by these wider pressures, though to a lesser extent than other sectors. Metsä Wood continues to work hard to mitigate these pressures where possible, while supporting customers with reliable supply, clear communication and a product range aligned with market demand.

Project costs across both RMI (Repair Maintenance & Improvement) and construction remain under pressure, and this will likely further weaken demand over the coming months. Market conditions will remain challenging, and we will continue to work closely with our customer base to support new opportunities that arise, inventory planning and create value in a more cautious trading environment.