According to the latest USDA statistics, total US hardwood lumber exports to the EU for 2017 were up by 2% compared 2016 to 358,802m3, worth US$278m, the highest level since 2014.
And, despite having the weakest year-on-year growth of G7 nations as a result of weaker consumer spending caused by higher inflation following 2016’s Brexit vote, the UK remained America’s biggest European market. Its US lumber imports were unchanged at 103,823m3, accounting for over a quarter of the EU total.
UK white oak imports decreased by 4%, but it still comprised 50% of its US hardwood total. Tulipwood was up 9% to 25,570m3 and walnut 9% to 7,000m3. UK American ash imports, which have been steadily declining since 2014, fell a further 24% to 7,000m3.
Red oak imports were up by 34% to 4,828m3, while remaining species recorded low volumes, including maple and cherry.
The outlook for the UK/American hardwood market in 2018 is more uncertain. Construction output suffered its biggest drop in five years in the final quarter of 2017 and, while it picked up slightly in February, general market uncertainty, linked by many to Brexit concerns, is continuing to impact forward orders.
UK buyers of American hardwood say their joinery customers are still reasonably busy, but sales for some importers have been slower this year compared to last. As one put it, “business is only just okay. We are not breaking records, and there are concerns about falling house prices, the prospect of interest rate rises, and the impact of Brexit, especially whether VAT will be payable upfront on EU imports after we leave.” All of these factors, they added, could impact on future joinery activity such as contract fit-outs, shopfitting, and renovation, which have thus far kept workshops busy.
As far as the current situation is concerned, UK hardwood stock levels are low to moderate and traders report demand for white oak as steady – and with more reports of rising prices and tightening supply in European oak, market interest is thought unlikely to wane.
Importers say there is a solid customer base of manufacturers who prefer the consistency of US white oak for machining and the better specifications it provides, especially in wider boards or longer lengths.
Tulipwood is also reported to be selling well, mostly in the upper grades, for mouldings and general joinery. The species’ capabilities in structural and cladding applications are also now demonstrated at the Maggie’s Centre in Oldham, designed by dRMM Architects and opened last year. The core structure comprises tulipwood CLT panels and the bespoke ‘corrugated’ cladding is in thermally modified tulipwood.
It’s now being held up by AHEC as a construction reference for the species and another architect plans to use the thermally modified timber cladding for a residential project.
Some UK traders also report improved interest in US maple and others that cherry is moving a little again thanks to demand from furniture makers.
Ash, once the second most traded US hardwood species in the UK, continues to see demand fall, largely because of the emerald ash borer infestation, consequent tighter plant health regulations and worries over long-term supply.
Coffin manufacturing may remain US red oak’s biggest market but some importers report more interest from manufacturers who can mix it into products as a “cheaper oak source”. And while the species remains competitive compared to white oak, and architects and designers continue to show interest, says AHEC, demand could potentially grow. It is also hoped its extensive use in the new European headquarters of Bloomberg in London will act as a specifier showcase for it.
Looking ahead, UK importers are understandably anxious about recent changes to criteria requirements for FSC’s controlled wood standard and the impact it may have on American hardwood business. At the same time, feedback from the trade is very positive about AHEC’s new environmental communications tools. These include its interactive map and its interactive online Life Cycle Assessment Tool. More UK importers are now also requesting American Hardwood Environmental Profile documentation, which provides essential environmental impact data for consignments of US hardwood despatched anywhere worldwide.