Like the hardwood market overall, the UK tropical timber market has decelerated in recent months. It’s also consequently become increasingly competitive as more suppliers chase a dwindling pool of active buyers.

“People have become very aggressive for business,” said an importer/distributor. “At the same time we’re seeing increasing late payment from customers and we’ve heard of other importers reneging on tropical contracts due to market slowdown.”

“General UK trade has become very competitive, with some businesses offering African timbers at very low rates that will be difficult to replace going forward,” said a continental-based supplier to the UK.

Inevitably the uncertainty surrounding Brexit and associated general economic nervousness, are cited as key factors depressing the market.

High levels of stock on the ground are also attributed, at least in part, to importers buying more in advance of the original March Brexit date as a hedge against anticipated customs delays after that – although this tactic was largely seen as the preserve of bigger companies.

“To increase stock, you’ve got to be able to access the supply, have the money to pay for it and somewhere to put it,” said an importer. “In hardwood, that’s a limited number of businesses.”

That said, latest FLEGT Independent Market Monitor (IMM) analysis of Eurostat Comext data does show an increase in UK tropical timber product imports, including furniture in the first half of 2019. The IMM does not speculate on the cause, but importers believe pre-Brexit buying, notably in tropical plywood and furniture, to be one factor.

Total tropical wood product imports for the period were up 13% to 312,000 tonnes. Biggest increases were seen in mouldings and decking, 56% ahead at 6,900 tonnes, flooring, up 42% to 1,500 tonnes, sawn timber, up 20.6% to 36,000 tonnes, wood furniture, up 15.4% at 108,620 tonnes and plywood, up 13.8% at 104,000 tonnes.

Decreases came in tropical log imports, 64% down to 1,040 tonnes and sleepers, 18.4% lower at 1,150 tonnes.

In terms of supplier country, greatest growth came in tropical wood imports from China, ahead 79.8% at 54,970 tonnes. Imports from the Republic of Congo were 25% up at 5,810 tonnes, Brazil 19.3% at 6,630 tonnes, India 16.5% at 7,870 tonnes and Cameroon 16.1% at 9,330 tonnes. Vietnamese imports were 8.3% ahead at 52,530 tonnes, Malaysian 2.7% at 68,180 tonnes and Indonesian 0.9% at 59,000 tonnes.

Biggest UK suppliers of tropical sawnwood were Cameroon, with sales up 23.4% at 9,080 tonnes, Malaysia, 1.9% down at 5,250 tonnes, Republic of Congo, up 22.8% at 5,690 tonnes, the Netherlands, up 58.1% at 3,200 tonnes, and the Democratic Republic of Congo, up 61.4% at 3,230 tonnes. Imports from Brazil were up 117.1% to 2,350 tonnes.

In tropical plywood, biggest suppliers were China, up 80.6% at 54,960 tonnes, Malaysia, down 32% to 16,810 tonnes and Indonesia, down 14.2% to 17,810 tonnes.

As for tropical timber prospects post-Brexit, some forecast further concentration in the UK import sector due partly, in the event of a no-deal departure from the EU and/or the UK leaving the EU Customs Union, to all imports via the EU having to undergo due diligence under the UK Timber Regulation (UKTR), set to replace the EUTR. The prospect of goods licensed under the EU Forest Law Enforcement, Governance and Trade initiative (FLEGT) from Indonesia entering the UK via the EU also having to be subject to due diligence is predicted to increase pressure on smaller importers to buy from bigger UK-based import businesses instead.

The FLEGT project overall is seen as having some potential to underpin tropical trade, but with the proviso that its wider social, economic and environmental aspects are better communicated and more countries achieve FLEGT licensing status, so their direct EU/UK exports are exempt further due diligence under the EUTR/UKTR.

Importers also said the tropical timber sector needs better marketing and communication to counter continuing market perceptions that it is inevitably implicated in deforestation. However, two European initiatives, the Sustainable Tropical Timber Coalition and the Fair & Precious tropical timber marketing and branding campaign, are now working together to achieve just that.