In a tight market influenced primarily by restricted supply rather than buoyant demand, availability of some of the leading African Hardwoods has become particularly squeezed. According to some industry experts, there is evidence of “over-buying” by some UK customers who, fearing ever-deepening shortages, are attempting to plan ahead.
Leading UK importers are bemoaning the difficulties involved in securing sufficient volumes of sapele across the entire specification range. “We have been trying to buy kiln-dried material but it is very hard to get,” said one. “We are concerned at not being offered much. It’s harder to procure than to sell at the moment – which is a big turnaround.” Another suggested that existing contracts were running “two to three months late”. These conditions have resulted in upwardly mobile prices for this popular species, to the extent that some UK importers have reportedly been gauging the potential of alternatives.
Feedback relating to sipo was broadly similar this week, while framire was also described as a “hot item” that was proving difficult to source in adequate volumes. “There’s not enough framire coming through,” TTJ was told this week. “We have plenty of contracts sold forward with customers offering to buy whatever we can get. A lot of suppliers are not taking on new orders because they have already got too much on their books.” Prices of this adaptable joinery timber have also been heading north over recent months.
Supply of wawa has remained tight, too, whereas iroko appears to be offering a notable exception to the rule since prices have been relatively stable and supply is comparatively smooth. Some industry experts pointed to early evidence of firming iroko prices on a supply basis, but most described demand in the UK as “subdued” – perhaps because many end users still have decent stocks available.
Europe “starved”
Overall, however, Europe is reportedly becoming “starved” of some of the leading African hardwoods – not least because China and other parts of South-east Asia are providing an attractive alternative for the mills by demanding huge volumes of hardwood logs.
As previously reported, sapele has been affected during the year by the rapidly rising price of Far Eastern dark red meranti. Prices of the latter surged between February and the summer, but have since stabilised US$20-30 per tonne below their 2006 peak. Recent UK demand has been unspectacular, possibly because some buyers are holding off in anticipation of further price movement.
That said, buyers in Italy are expected to return in force to the market at some point in the fourth quarter; and since they tend to buy the same specifications as the UK, this could have an impact on both availability and price. Supply is relatively good at present but could weaken with the onset of the rainy season.
A shortage of supply to mills in the Far East has led to firm conditions in the mouldings market; stocks in the UK are described as “short”. Meanwhile, strong demand for keruing in the US and South-east Asia has limited availability to a UK market which the mills regard as “fickle” in its specification requirements. Demand in this country is seen as “low key” in any case.
Shipments from Brazil
In Brazil, delays relating to forest plan approvals and transport permits have impacted on the flow of hardwood exports. One UK importer added: “Shipment is very difficult. You can’t get direct shipments from a lot of Brazilian ports to the UK, so they have to go via the Continent, which means more cost.”
UK importers report an increase in offers for the leading decking species out of Brazil such as ipe and garapa – but at higher price levels as mills grapple with low stock levels. One summed up the majority view when saying: “We are still struggling to get any offers at all on cedar – certainly not for kiln-dried material – and prices are very high.” Those engaging in the cedar market require “a watertight certificate of origin” but, even then, problems and delays are said to arise on a regular basis.
Turning to temperate hardwoods, latest statistics from The American Hardwood Export Council (AHEC) confirm white oak’s dominance of the UK’s imports from the other side of the Atlantic. In value terms, the UK brought in US$19m worth of American white oak during the first half of this year – equivalent to a 6% increase over the same period in 2005. In second place was ash on US$4.7m, while the value of tulipwood exports to the UK jumped 6.8% in value terms to US$3.2m as well as 6% in volume terms. UK purchases of American walnut lumber climbed 6% to US$2.7m in the first half of this year, while imports of hard maple jumped 13% – also to US$2.7m.
The value of cherry lumber imports slumped 33% to US$1.7m in January-June this year, most probably in response to the high price levels witnessed in the recent past. Also on the decline were UK imports of red oak lumber, the value of which slid 21% to US$1.5m.
According to the AHEC figures, the total value of primary hardwood products shipped to the UK in January-June this year was US$52m, with sawn timber accounting for around three-quarters of the total. Log shipments increased by 33% to 10,898m3, valued at US$8.4m.
According to a senior AHEC spokesperson, American white oak represents “the hot item of the moment”. In addition to strong sales into Europe, buyers in China and other South-east Asian countries such as Vietnam “are buying it like it’s going out of style”, he said. “There is not a lot ready at source available to ship.” Hardwood experts in the UK agree that most forms of white oak – and particularly strips – are proving tough to obtain.
Ultimate success
Having noted the sharp decline in red oak lumber shipments to the UK, the AHEC spokesperson was confident that a campaign to boost consumption of this species would ultimately enjoy success. There was increasing evidence that, in the light of the current shortage of white oak, many customers were taking a closer look at red oak as an alternative. While acknowledging “a traditional preference” for white oak in Europe, he expected architects and specifiers – rather than importers – to precipitate increased demand for red oak in the future. “I expect the campaign to have success because red oak is a highly sustainable hardwood,” he said.
UK hardwood traders acknowledge that red oak represents a huge opportunity. Easy to machine, red oak supplies are readily available at reasonable cost, it was pointed out. On the downside, however, the same traders suggested that red oak had never established a strong following in the UK and that question marks were continuing to be raised over its durability. The consensus is that a substantial improvement in red oak sales within the UK “won’t happen overnight”.
As for other North American hardwoods, reasonably bullish market conditions have been reported for tulipwood. According to an experienced supplier in the US, prices of this species climbed during the summer for the first time in his memory. Some sizes – notably 6/4 – are understood to be difficult to source.
There is no shortage of ready buyers for American black walnut. By contrast, the ash and cherry markets have remained broadly stable, while UK demand for hard maple was described this week as “a bit flat”.
Meanwhile, “strong and growing” demand has been reported for European oak, with a number of contacts highlighting China’s appetite for logs. One identified a developing shortage of 1in European oak thanks to an upturn in demand from Scandinavia. Most contacts, however, described overall availability as adequate.
