Sector Market Update: Hardwood | 15


related customers being most cautious, ‘while renovation, fit-out and specialist application sectors continue to perform steadily’. “In the UK specifically, market sentiment remains cautious, but our order intake has improved slightly compared to the previous quarter, helped by stock correction earlier in the year and selective restocking by customers,” said the international trader. A UK importer said the upper end of business remained strong. “We’re seeing 3D veneer, some types of flooring and thermo-treated product moving well,” they said. “But while there’s still plenty of money at the top end, and Poundland are doing well, it’s the middle market most people depend on that’s struggling.” An importer distributor agreed that demand from top end joinery sector generally was robust. Manufacturing sales were more mixed, with some customers remaining busy, others experiencing slow demand. Merchant sales were generally quieter.


“That’s due to merchants dependence on new build construction, to which joinery and manufacturing are less exposed,” they said. “Building is not doing so well and the Construction Products Association in January revised its earlier forecast of 4% for private housebuilding growth in 2026 down to just 1.5%.”


Rising fuel prices due to the Middle East conflict have naturally impacted hardwood distributors’ own overheads. They have also led to increases, reported up to 15%, in freight costs from Asia.


Restricted passage through the strait of Hormuz has additionally led to container location and lead time issues. This, said one trader, demanded ‘disciplined stock management and sourcing flexibility throughout the supply chain’. There are mixed reports on the effect of high fuel prices on freight rates from sources other than Asia. One importer-distributor said they had not seen the same inflation elsewhere. “So far, we’re also not seeing fuel costs have the same impact on actual timber prices that we’re seeing in the panels business, where we’re facing almost daily surcharges,” they said. “That’s mostly down to lower demand, but that could change if sales pick up or fuel prices stay high for much longer.” An international trader said they were already seeing this picture changing. “There is ongoing pressure on landed costs, particularly where production remains dependent on conventional energy sources,” they said. “From West Africa, higher ocean freight costs, combined with rising local transport, drying and modification costs are now feeding directly into higher landed prices.” On Asian sources, they added, supply limitations and longer lead times are adding to price pressure exerted by higher freight costs, particularly for decking products.


South American supply is reported as ‘characterised by tight availability, export documentation delays and stricter application of CITES controls, driving interest in non-listed species’. “Lead times are increasing and suppliers seeking price increases,” said one trader. European suppliers, they said, were also ‘signalling imminent price increases driven by higher transport costs’.


An additional issue reported with European hardwood, notably its mainstay oak, is availability of prime quality logs, which is driving up their price. The problem is attributed to interaction of various factors, including forest management, but also pest and disease problems, and increased incidence of extreme weather. Currently the market is partly shielded from this issue by slack market demand. “One of our Italian suppliers is talking of significant shortages of oak, their kilns are currently 30% empty which is unheard of,” said an importer. “But the market’s not feeling this yet as it’s only running at 60% of its usual requirement. That limits mills’ ability to pass on cost increases.” On American white oak, prices of which reported turning up after a downturn, an importer said finding the selection customers required was more challenging. This is attributed to overall contraction in US hardwood output, with a continued loss of mills, notably small to medium- sized businesses, due to a range of reasons, from labour shortages, to rising overheads and succession issues. The US Hardwood Market Report put annualised US hardwood production to November 2025 at 4.12 billion bd ft, down 16.5% on the year before. Tulipwood business, however, is reported as remaining ‘solid’, while one importer distributor described walnut trade as stable, and maple sales good.


Several companies commented that red oak has been attracting growing interest. “It’s now a stock item for us, which it wasn’t pre-Covid, we’re selling something every week,” said an importer. “Customers probably came to it due to the price disparity with white oak, but they’ve come to appreciate its qualities in its own right, notably for interior joinery.” An importer distributor said: “We’re not yet significantly involved with red oak, but we may be behind the curve on this as a US shipper told us recently it’s now their second biggest export product to the UK. Also, some merchants and manufacturers are selling US oak as simply ‘oak’, regardless of whether its red or white. You see that online in particular.” From Africa, lead times are quoted as up to 12 months. Increasing supplier concern is reported over future sapele and iroko availability.


“Forests are regenerating, but less so with these species,” said an importer distributor.


“There is also talk that sapele may be CITES listed.”


African suppliers are said to be increasingly offering a wider basket of species, in part in reaction to supply stress on the big sellers. An importer-distributor said they were bringing in more thermo-treated ayous and frake. Another is trialling a batch of osanga.


African scantlings and other engineered products are also gaining traction, but with the expectation these will replace lumber sales rather than expand the market. “More suppliers are moving into engineered


to make more of the resource with use of lower grades and keep more of the value,” said an importer distributor. “We’re working with one of the biggest sapele suppliers which installed two new manufacturing lines. Increased engineered production is also expected to open the door to more secondary species, with the lamination process countering any stability issues. One importer said they had recently also bought some framire from Ghana, following its long-awaited authorisation by EU and Ghanaian authorities to issue FLEGT licences. “Ghanaian FLEGT licensing is not yet recognised under the UK Timber Regulation, which is absurd, but it does act as mitigation of illegality risk,” they said.


Importers report increased demand for both African and US FSC certified timber, mainly for public projects and from retailers and other large plcs.


“It was about 5% of our requirement, now its 20%,” said one. Meanwhile, the market prepares for the EU Deforestation Regulation (EUDR) which comes in for medium and large operators and traders in December 2026, and June 2027 for small and micro primary operators. The European Commission’s Simplification Review of the EUDR came out early May but did not change the core text. UK companies’ imports from the EU and customers’ exports to the market will both be affected by the Regulation. “We’re aligning due diligence processes and working closely with suppliers, some of whom are fully up to speed, others less so,” said an importer distributor. On the outlook, one importer said it ‘remained turbulent’.


“But we’re investing and taking on new people, and remain cautiously optimistic,” they said. “It may also lead to shortages due to production cutbacks, but just a modest uptick will change the picture on margins.” An international trader expected business to remain ‘challenging, but manageable’, with ‘sustainability and regulation increasingly shaping both supply and demand’. “However, companies that invest in compliance, transparency, stock reliability and long-term partnerships are well positioned to navigate the market successfully,” they said.


www.ttjonline.com | Summer 2026 | TTJ


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