{"id":81223,"date":"2021-09-21T11:48:47","date_gmt":"2021-09-21T11:48:47","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/demand-hardwood-europe-surged-prices-hit-new-highs\/"},"modified":"2025-09-18T17:22:26","modified_gmt":"2025-09-18T17:22:26","slug":"demand-hardwood-europe-surged-prices-hit-new-highs","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/demand-hardwood-europe-surged-prices-hit-new-highs\/","title":{"rendered":"Demand for hardwood in Europe has surged \u2013 prices have hit new highs"},"content":{"rendered":"

It\u2019s been six months plus of extremes and superlatives in the European sawn hardwood sector. Importers, distributors and merchants say the trading environment has been like nothing they\u2019ve experienced during decades in the business.<\/em><\/p>\n

Demand has climbed across key markets. Freight rates have reached unprecedented levels. Supply has become exceptionally tight and lead times have stretched from sources globally. Prices have consequently hit the heights, while margins are variously described as good to extremely good.<\/p>\n

\u201cIt\u2019s been a challenging trading period, in terms of obtaining supply, operating a managed volume sales system so we can service as many customers as possible and keeping up with shipping costs hitting stratospheric levels,\u201d said one importer.<\/p>\n

\u201cBut if you didn\u2019t make money in the hardwood trade over the last six to nine months, there\u2019s something wrong with your business model!\u201d<\/p>\n

At the start of September, traders were detecting the energy going out of the market to a degree with rising nervousness among customers about committing to current high prices in case they were about to peak.<\/span><\/p>\n

However, while some species may be set for a sharper price downswing than others in coming months, the consensus was that the overall market, at most, is set for a gradual adjustment to lower levels of growth and consolidation rather than any marked reversal.<\/p>\n

After slumping in the first and second quarter of 2020 during the first pandemic lockdowns, European hardwood consumption is reported to have started to recover towards the end of May last year.<\/p>\n

The next 12 months saw a pretty continuous upward curve, with May and June 2021 proving particularly frenetic. A key demand driver across the continent and in the UK has been the boom in home improvement, refurbishment and DIY markets.<\/p>\n

\u201cBeing stuck at home in lockdown, isolation and on furlough, consumers have been prompted to improve houses and gardens \u2013 and they\u2019ve got the money as they haven\u2019t been spending on holidays and other leisure activities,\u201d said an importer-distributor.<\/p>\n

\u201cThere\u2019s also been significant growth in home and garden office construction, with the expectation that increased remote working will be a permanent fixture, even postpandemic.\u201d<\/p>\n

\u201cWe saw particular growth in sales of hardwood cladding destined for garden buildings, and the decking to go with it, as householders turned properties into live\/work spaces,\u201d said a merchant. \u201cSleepers and other hardwood garden products sold strongly too.\u201d<\/p>\n

This repair, maintenance and improvement market (RMI), in particular, is where hardwood businesses are now seeing some cooling off.<\/p>\n

\u201cEuropean consumers are finally able to take vacations and go out as covid travel and social distancing restrictions are relaxed, so there\u2019s less disposable income, plus more are back at work, with less time for DIY projects,\u201d said an importer. \u201cBut we\u2019re not seeing this business dry up overnight. Our RMI customers still report pretty good order books.\u201d<\/p>\n

Building sector demand also picked up as lockdown restrictions wound down. It was given a further boost by governments across Europe seeing construction as a vital engine for jump starting stalling Covid-hit economies, supporting it with spending on public projects and fiscal stimulus measures.<\/p>\n

Some importers report this sector also losing some momentum late summer\/early autumn this year. \u201cBuilders are facing rising prices and shortages across all raw materials and some land banks are deferring development projects, presumably to wait for supply to improve,\u201d said one.<\/p>\n

\u201cIf they can\u2019t get the steel or bricks or concrete, even where they can source the wood, some builders are also delaying buying to see if prices stabilize or come down.\u201d<\/p>\n

Again, however, other traders say demand from the general construction joinery sector is slowing rather than turning down and window, door and staircase makers are reported still very busy.<\/p>\n

Market analysts also agree that through 2021 as a whole European construction will have racked up a robust performance.<\/p>\n

According to the latest outlook for its 19-country region from Euroconstruct, the sector\u2019s volume output will rise 3.8% this year, after last year\u2019s 5.1% contraction.<\/p>\n

While it varies from country to country, Euroconstruct says the rate of building recovery has been faster than initially expected, underpinned by generally favourable economic conditions. It predicts most of the losses resulting from Covid to be recovered and activity to return to pre-pandemic levels by 2022, with further growth next year of 3% and 2.1% in 2023.<\/p>\n

Distributors report recovery in hardwood demand from furniture manufacturers too and the hotel and wider hospitality markets. Some say even shopfitting, which was devastated in the pandemic, is showing signs of life, although starting from a very low base.\u201d<\/p>\n

Adding all these markets together and the generally agreed figure for volume growth in the European hardwood sector in 2021 to date is 20%. That, said one importer, returns business almost to 2019 levels.<\/p>\n

Further underlining the level of activity and limited supply, with mills\u2019 efforts to catch up with demand still constrained by covid-safe work practices, there has, until recently, been little customer push-back on rising prices.<\/p>\n

\u201cThey\u2019re busy and need the wood, so they\u2019re paying the price and paying on time \u2013 bad debt has been at all-time lows,\u201d said an importer\/distributor.<\/p>\n

\u201cThere may be a bit more caution on price now, but we\u2019re still finding most customers who decide to shop around coming back and paying because they can\u2019t get cheaper elsewhere.\u201d Another sign of the times has been widespread allocation. \u201cOur suppliers are allocating timber to us, so we\u2019re allocating to customers. It\u2019s less a sales role, more rationing!\u201d said an importer.<\/p>","protected":false},"excerpt":{"rendered":"

It\u2019s been six months plus of extremes and superlatives in the European sawn hardwood sector. Importers, distributors and merchants say the trading environment has been like nothing they\u2019ve experienced during decades in the business. Demand has climbed across key markets. … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":63267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715,4714],"tags":[3384,3299,3247],"class_list":["post-81223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-demand","tag-europe","tag-hardwood"],"acf":[],"yoast_head":"\nDemand for hardwood in Europe has surged \u2013 prices have hit new highs - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/demand-hardwood-europe-surged-prices-hit-new-highs\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Demand for hardwood in Europe has surged \u2013 prices have hit new highs - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"It\u2019s been six months plus of extremes and superlatives in the European sawn hardwood sector. 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