North American new orders for tropical hardwoods have experienced a modest slowdown, but the demand for other hardwoods remains robust especially in high-end projects and exterior applications, according to Fastsmarkets’ Hardwood Market Report.
The cross-commodity price reporting agency says that sales for many importers have remained steady in October compared to September, while other sellers have seen a modest decline. Most, the report said, “are still experiencing decent outbound shipments due to solid order bookings in late summer.”
The October 31 report said that tropical hardwoods are prevalent in high-end projects because they are relatively expensive. “At present, importers are experiencing good demand from producers of high-end residential moulding and also from commercial millwork manufacturers,” the report said. “Sales to large and mid-sized residential flooring and stair plants are slow, but business is holding up well with custom flooring and stair makers.”
The report also found that in residential markets, demand for tropical hardwoods for use in exterior applications remains noticeably stronger than for interior applications. Sales to outdoor furniture producers remained steady, but sales of domestic hardwoods to case goods and upholstered furniture manufacturers are weak.
The overall supply of tropical hardwood sawnwood at US and Canadian import yards is comparable to overall demand. However, that is not the case across all species, thicknesses, and product specifications. For example, 4/4 Sapelli is readily available, but many of the thicker sizes are scarce. Likewise, some contacts indicate flatsawn African Mahogany is difficult to source, while quartersawn material is not.
US imports of tropical hardwoods and related products— which were showing recovery in recent months after a slow start to the year—slowed markedly in September. Imports of hardwood plywood tumbled 34% to a level only about half of what it was two months ago.
US imports of sawn tropical hardwood fell by 7%; imports of hardwood flooring fell 6%; imports of assembled flooring panels fell 12%; and imports of wooden furniture fell to their lowest level since March, dropping 8% in September.
Imports of tropical hardwood veneer plunged 68%, but that figure is not as bad as it appears since August is the peak month for these veneer imports and a sharp drop regularly occurs in September. On the upside, US imports of hardwood mouldings gained 19% in September, surpassing US$12 million for the first time since May. Yet, despite the gain, the September total was 26% less than that of September 2022.