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2 July 2008
TIMBER
PRICES
UPM Tilhill Timber Bulletin Summer 2008
The latest UPM Tilhill Timber Bulletin is now available to
be downloaded - UPM
Tilhill Timber Bulletin 2008
UPM Tilhill harvests over some 1.7 million tonnes of timber
and exports 400,000 tonnes a year. They should therefore be
well placed with their parent company UPM Kymmene to identify
trends in UK timber prices.
In summary UPM Tilhill predicts that there will be lower
prices for construction timber as house prices decline with
strong continuing interest in small roundwood. The increasing
cost of fuel for harvesting, transport and energy in the mills
will also impact on prices. The trend illustrated in figure
11 shows a 3% - 5% fall in 2008 and 5% p.a. growth in the
two years thereafter.
FIM believes that the short term timber price decline is
likely to be more pronounced and the speed of recovery and
growth will depend on the wider economic climate. Longer term
outlook for timber prices for the next 10 years is good.
IPD INDEX
Timber prices are a major factor in commercial forest values;
however as demonstrated by the Investment Property Databank
(IPD) UK Forestry Index, forestry has proved a resilient investment
(www.ipdindex.co.uk). Over the period 1992-2007 the Timber
Price Index declined by 50% whereas the annualised upper quartile
return of commercial forestry values over that time was 5.1%
per annum.
To download the full document please select link below.
IPD
UK Forestry Index 2008
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