UK Wood Market News
‐2002.04.29／

Pine furniture manufacturer Ducal is to make 90 of its 300 administration and support staff redundant, reducing employees number to 650. Increased competition from imports, which led to an increasing amount of cheaper priced products, have been blamed for trading losses in 2001.

MFI Optimistic

MFI had a bumper winter sale and believes there will be no slowdown in consumer spending this year. Sales in the year to December 2001 rose by 14.1% to Stg766 mil. and operating profits jumped 69% to Stg34.9 mil.

Silentnight closes plant

Beds and furniture manufacturer, Silentnight, has been forced to lay off 220 employees with the closure of a cabinet-making factory in Keigthley, West Yorkshire. Production is to be moved to a plant in Sunderland. A company spokes-person said it is hoped that the closure will enable the group to cut some costs. Silentnight has said it is on target to report profits in the region of Stg11.5mil. in April 2002.

Public spending good news

According to AMA Research, the contract market was worth Stg659 m in 2001 and it is expected to reach Stg765 mil. by 2005, with an annual growth of 3-4% over the next four years. The growth will be led by increased public spending. Beds and bedroom furniture and upholstery occupy the two largest sectors, followed by other sectors, including the Ministry of defence, prisons and the educational sector.

Ekornes sales

UK based Ekornes, saw UK sales jump 40% last year to Stg41.36 mil., contributing 10.5% to group sales in 2001. The growth was mainly due to the pay-off of investments in marketing with stockist and from the research on product development.

West African Log Prices in UK

UK Sawnwood Prices

Reports from the UK talk of a firming of prices for Dark Red Meranti driven by concerns over availability but some say shippers are testing the market with higher prices. However, as analysts point out few buyers are prepared to place orders at the new prices for fear the rise will not be sustained. That said, the view of most importers is that Meranti prices have only got one way to go and that must be up.

FOB plus Commission		per Cu.m
Brazilian Mahogany FAS		No price
quoted
Teak 1st Quality 1"x8"x8'		Stg2250-2600
Tulipwood	FAS 25mm	Stg305
Cedro	FAS 25mm	Stg430
DR Meranti	Sel/Btr 25mm	Stg260-280
Keruing	Std/Btr 25mm	Stg190-215
Sapele	FAS 25mm	Stg310-325
Iroko	FAS 25mm	Stg305-320
Khaya	FAS 25mm	Stg360-380
Utile	FAS 25mm	Stg370-385
Wawa	No1. C&S 25mm	Stg200-250

Sapele is in steady demand but volumes have not increased much over recent months while Iroko markets have been affected by reduced demand from the important Irish and Spanish markets. Analysts say there seems to be a trend in Ireland towards Sapele.

With the rain season about to start in W. Africa logging will be affected, as usual, so supplies will be affected.

Plywood and MDF in the UK

For more information on the trends in the UK market please see http://www.ttjonline.com/