UPM Tilhill, the UK’s largest forest management and timber harvesting company, said recent forecasts of softwood availability for the UK forest estate – an increase to an average of 16 million m3 over the next 25-year period (National Forest Inventory Report) – provided good grounds for optimism.
It also cited Timber Trade Federation statistics which show UK timber and panel processors’ share of UK wood products volumes increasing to 44.6% in 2012.
UPM Tilhill’s timber operations director Peter Whitfield said economic uncertainty had diminished and signs of recovery in the first half of 2013 were being seen. And he said the sterling/euro exchange rate showed no signs of turning against domestic processors.
The Timber Bulletin says the biomass market had grown "steadily" over the last 12 months but with very little sign of any major development happening within the newbuild large-scale dedicated biomass power station sector.
UPM Tilhill anticipates more certainty in the biomass sector’s direction during the current year.
"Market price for virgin fibre energy wood sales has largely followed general timber market value trends over the preceding year," it said. "It is anticipated this trend will continue over the next 12-month period."
