The UK market has been in significant turmoil for well over a year now with no signs of the unprecedented demand levels abating. We are now seeing the market move forward in large steps with some importers imposing £100-£150/m3 increases for July. In some cases, these increases have been followed in full by UK sawmills. We know this to be factually accurate as we have experienced these levels of increase within our own businesses.
With the increases the importers are imposing, this now stretches the difference between import and home-grown material to £200/m3 which is unacceptable. Whilst the merchants have always insisted that the UK market is tagged to the import price on a reducing market (price reduced by £80/m3 in 3 months in 2019 because the import price fell dramatically) and that the gap should always be between £20-£30/m3 we will not be applying the huge increase seen from the likes of Sodra and Vida. We will however be moving in line with the market and moving prices by levels we feel are both justified and sensible.
Our input costs continue to rise and with further escalations expected for Q3, we have no option other than pass this to the end user as many other building products have.
Given the shortages at present, the levels of demand and the forthcoming shutdowns in Sweden and the UK, the situation is likely to get worse before it gets better.
Prices will continue to move forward in August and September as the global markets continue to heat up, specifically the US and China, and whilst this is sucking volume from the traditional UK suppliers, the market will continue to be a difficult market to operate in.
BSW will continue to monitor the market and will react accordingly to any movements affecting the business. We will try to offer consistent supply to those customers who have supported BSW through the market cycles, good and bad, and hope that by working together we will get through these extremely difficult times.
With the above in mind please find the updated price list attached (with an increase of £40.00/m3) applicable for all July 2021 deliveries. As stated, we will be moving prices forward again in August and the expected increase on all products will be between £20.00/m3 and £30.00/m3 but I will confirm full details before the end of this month. With have had an increase of approx. 5% nearly every Month since the start of the year and this latest equals a further 15% with another 10% or more expected in August.
If you have any questions or queries, don’t hesitate to get in touch with our team via email at firstname.lastname@example.org.