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CanadExport is the official source of news and advice on trade and investment opportunities around the world, for Canadian entrepreneurs who want to compete, partner and prosper in the global marketplace.						CanadExport Vol. 25, No. 2 (PDF)

Trade News

January 12, 2007

Can Canadian timber exporters make the cut in the U.K.?

The market for redwood and whitewood is changing in the United Kingdom, creating opportunities for Canadian producers of timber if they can cut to U.K. specifications.

Jason Kee, a trade commissioner with the Canadian High Commission in London, says his office is receiving an increasing number of requests from U.K. importers of timber looking for Canadian lumber. Kee says this increase in demand stems from the fact that prices for redwood and whitewood are rising due to a growing shortage of whitewood sawlogs in Europe. But there are many other factors too.

“One reason is low river levels in Russia, which decreases the volume of logs arriving at the mills,” says Kee. “Other factors include increased demand in internal markets and a change in the tax regime in Finland, which decreases incentives for forest owners to cut trees.”

The trade commissioner points out that these factors have reduced supply by about 10% compared to last year. He adds that in Sweden, producers can sell all they can produce. Moreover, levels of green wood coming out of the Baltic states has also decreased as producers there want to sell more value-added products like kiln-dried timber.

Naturally, these factors have affected price, which rose some 25% in 2006. If these factors remain, analysts predict a further increase of 5% within months. With these increases, Canadian softwood timber may soon prove competitive in the U.K. market if companies are ready to cut to U.K. specifications. The most common cuts in Europe’s timber market are 32, 35 and 47 millimetres in thickness and 225 millimetres in width.

For more information, contact:
Jason Kee
Canadian High Commission in London

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