New Tools of the Trade

The Structural Price Index displays the monthly price of structural timber stretching back to 2018, giving users the ability to compare today’s timber prices to those seen five years ago. The figures seen in 2018 were pre-Brexit, pre-Covid and pre-War in Ukraine, making them arguably the most recent ‘normal’ year we have experienced and therefore a sensible point for comparison.

TDUK’s head of technical and trade policy, Nick Boulton, explains: “The TDUK Structural Timber Price Index is a powerful new tool for the construction industry to understand the state of the timber market in the UK. As you can see from this first iteration, now online for public use, the price of structural timber has been on a rollercoaster journey over the past three years – in between major events like Brexit, Covid, and the invasion of Ukraine.

“Timber is a globally traded commodity, and the UK is a major importer of structural timbers, so large geopolitical events can ripple across the trade. The abnormal structural timber prices we have seen over the past three years reflect the abnormal market we have all lived through.

“However, the three most recent months shown on the index – from November 2022 to January 2023 – are among the most stable price periods we’ve seen since 2019 – which likely reflects the balance between supply, demand, and price. While no one can predict the future, the commodity market for structural timbers has historically been a steady, and dependable one. We will be watching the market carefully to see whether this trend will be re-established.”

This latest tool is part of TDUK’s ongoing mission to provide comprehensive market data to help the timber supply chain navigate the changing economic climate. This includes monthly timber import statistics, quarterly reports on UK timber demand and supply, and weekly economic and construction updates from the Construction Products Association.

Conflict timber still a problem

TDUK is also warning members to remain on high alert for illegal imports of conflict timber from Russia and Belarus, amid reports that Russian birch plywood is still being exported to the market via third-party countries. New reports suggest that Russian birch plywood and other conflict timbers are being exported into America and other countries, including the UK, disguised as having originated in areas such as Vietnam, Asia and China.

Belarus into a third-party country, where it is then repackaged and reported as originating from that country instead.

The Environmental Investigation Agency (EIA) says Russian birch plywood is being routed through Asia before being shipped to America, and that most birch products currently being exported from Vietnam to the United States in fact originate in Russia. According to Vietnam customs data, roughly 40,000m3 of birch plywood is transported every month from Russia and China into Vietnam, where it is assembled into furniture and plywood and repackaged, with these countries then listed as the country of origin.

TDUK is urging its members to carry out their due diligence and make sure they know the timber’s country of origin before purchasing from new sources. Buying or selling sanctioned Russian wood products in the UK or EU can result in severe consequences for the businesses involved, even if this was done unintentionally.

The import of wood products from Russia to the EU and UK was banned in 2022 following the Russian invasion of Ukraine, when wood products in that area were classified as ‘conflict timber’.

Since then, importing any timber originating from Russia, Belarus, and certain parts of Ukraine to the EU and UK is considered illegal under the EU/UK Timber Regulations. This also includes timber products indirectly imported to the EU/UK via third-party countries. However, this ban is being evaded by some, who are transporting their products from Russia and

Nick Boulton adds: “We would ask all our members to continue remaining vigilant against any organisations offering to supply Birch Plywood to the UK from the Far East or countries like Turkey, Kazakhstan or Kyrgyzstan. Should Russian timber products be found in the UK/EU market, the importer and all customers who have purchased these products may be subject to legal action, fines and reputational damage, which would also impact their trading partners in the manufacturing country. Always do your due diligence with any potential new suppliers, especially when dealing with products that could potentially be considered conflict timber.” More