Spring saw some of the warmest, sunniest weather many of us can remember at this time of year, which supported strong demand for timber landscaping products, especially in the DIY sector. Additionally, the late Easter enabled a run of bank holiday weekends which further encouraged people into their gardens. Importers were optimistic going into 2025 and had good levels of stocks imported in advance of Spring which supported availability

Demand for machined timber products, while showing signs of improvement at the beginning of the year, were subdued compared to landscaping products as people prioritised their outdoor spaces for improvement and renovation.

Imports of softwood to the UK from the main joinery grade producing countries (Sweden, Finland) are down year on year, and lack of demand is putting pressure on sawmills to find alternative markets. Log costs in the Nordic regions continue to rise in Q2, and sawmills are looking to further increase prices. However, with weak global demand, sawmills were prevented from recovering all the costs of higher raw materials.

Global trade and uncertainty around the imposition of tariffs by the US administration on major timber exporting countries casts a long shadow. The impacts on global trade flows and prices could be significant.

After a reasonable start to 2025, demand for timber I-Joists and Kerto LVL eased in the second quarter as private housebuilding struggled to gain momentum. Although the Bank of England cut interest rates twice in the first half of 2025, mortgage rates remained 4.5% on average. This, combined with low consumer confidence, slowed the newbuild market and makes it even harder for the government to meet its 1.5m new homes target.

The use of timber in construction and multi occupancy developments especially will be crucial to meeting its target. The Government’s Timber in Construction Road Map (March 2025) which aims to increase the use of timber in building projects also supports the Government’s targets for carbon emissions reductions and sustainability.

Implement a new state-of-the-art ERP system is always a challenge and Metsa Wood’s upgrade this quarter was no exception. However, service and stock levels are back to normal, and we look forward to demonstrating the increased capabilities we now have to customers.