UNITED KINGDOM FOREST PRODUCTS ASSOCIATION

UK WOOD PROCESSING SECTOR REPORT - PANEL PRODUCTS AND PULP AND PAPER

UK PANEL PRODUCTS REPORT

The year has seen good demand for all products manufactured by UK panelboard producers. OSB and particleboard experienced good demand throughout 2010, with MDF demand improving as the year progressed. The major issue facing most of the UK manufacturers was that of rising wood prices, as a consequence of increased demand for wood.

Supplies of sawmill products to the sector have been maintained at satisfactory levels, in line with increased sawmilling activity.

The Winter appeared a little too early, in November 2010 and lasted longer too, with its effects being felt well into 2011, with wood supply being disrupted to some plants during the severe winter weather.

The threat of large scale use of woody biomass by electricity generating plants remains a serious concern to the panelboard sector, which continues to support the ‘Make Wood Work campaign, to highlight the very serious impact that Government support for wood fuel will have on the sector.

UK PULP AND PAPER SECTOR REPORT

PULP AND PAPER REPORT

2010 proved to be another challenging year for the pulp and paper sector.

Demand for newsprint in Europe in the fourth Quarter was slightly higher than in 2009. Over the full year, 2010 deliveries increased by 2%. During the year, imports from North America fell and European exports to Asia increased, resulting in high capacity utilisation towards the end of the year. MF magazine paper recovered slightly, although not to historic levels. The European market for SC paper was down by 1% to 4 million tonnes, while coated paper rose by 11% to 7 million tonnes. The market for Virgin Fibre Board was robust in 2010. Deliveries from European producers to Europe rose by 8% and to non-European markets by 13%.

Wood fibre supply in the UK has been fairly tight, with strong demand across all sectors of the wood using industry. The main factor being favourable exchange rates, resulting in increased market share in the UK and growth in export volumes. The exceptional Winter weather compounded the problem of low inventory at processors.

Report compiled 29 June 2011.