Supply update

October 2023
Freight costs have greatly reduced since their peak during COVID, helping to bring back prices for materials, particularly noticeable in timbers such as Meranti.

Popular American hardwoods that sell the most volume, namely White Oak and Tulipwood have quickly reduced their peak. Prices are expected to level out before creeping up at the end of the year / start of 2024, particularly in 38mm and 50mm. Prices for 63mm and 75mm are largely as the peak during COVID. Less popular timbers such as Cherry and Maple didn’t have the same level of increase and decrease as these are more static.

American White Ash supply is expected to continue to restrict as the Emerald Ash Borer still causes significant impact to Ash trees across the States.

European Oak and Beech prices have yet to settle as there is still a lack of supply as well as cost of kilning still being high due to lack of fuel from Russia. Some mills are also focusing on catching up on Oak orders than that focusing on Beech supply, as Oak is a higher value item.

Finnish Red Pine prices have decreased from their peak as supply settles.

June 2022

The ongoing Russian invasion of Ukraine is having a significant impact on the supply chains for softwood, hardwood and sheet materials.  For example, the oak veneer on our veneered MDF range was predominantly sourced from Ukraine.  Prime quality European Oak timber is generally in very short supply, with material no longer being taken from Russia, Ukraine or Belarus.

There are fuel shortages in West Africa which has caused some kiln operations to shut down.  We are anticipating significant shortages in Sapele and Iroko later in the year as a result.

 The cost of hardwoods from the USA has been a little bit more stable, albeit at very high levels.  However, sterling has deteriorated by over 5% against both the Euro and USD over the last 3 months and this is further increasing the cost pressures on all supply chains of imported products.

March 2022

Significant trade sanctions have been placed on goods and services from Russia and Belarus, following the Russian invasion of Ukraine.

Our company had traditionally sourced Larch from Siberia, and this item will become increasingly scarce in the months ahead.  It is further estimated that some 10% of softwood used within Europe would normally be supplied from Russia.  As this material will no longer come to Europe, there has been an immediate increase in demand for softwood from other sources, such as Scandinavia.  Our supply mill in Finland has intimated a significant cost increase in material for sale from next month.

We source our laminated pine products from a mill in Poland.  This mill is located quite close to the Ukrainian border and is experiencing significant disruption to raw material supply, with costs rising sharply as a result.

Russian hardwood logs will also no longer be accepted for processing in other European countries.  Whist PTL Euro Oak suppliers do not process Russian logs, the sanctions have added to the already very difficult supply situation. As a result, European Oak prices have increased in line with recent American Oak price rises.

Freight costs from the Far East remain at record levels, whilst logistical and other supply issues are impacting on imports of material from West Africa.