It’s 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’ve experienced during decades in the business.
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.
“It’s 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,” said one importer.
“But if you didn’t make money in the hardwood trade over the last six to nine months, there’s something wrong with your business model!”
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.