Prior to 2015, China’s economy grew at a remarkable rate. Commodities such as lumber and hardwood flooring headed east to meet the demand, driving up domestic prices. At home, we were seeing prices increase 20 to 30%. In fact, it was not unusual for Macon Hardwood to see weekly price increases. In 2015 the roles were reversed. Chinese demand diminished, and domestic prices began to fall dramatically as the lumber mill’s domestic supplies increased.
Late last year there was an overabundance of supply leading to volatility and price decreases. As of early 2016, we are seeing prices begin to stabilize as the supply meets demand, especially on the select grade and number one common grade. Number two grade flooring inventory is still high, and here we occasionally see some “fire-sale” pricing.
I wish that we had a crystal ball, could look into the future and tell you where prices are headed, but I don’t. We have seen the market respond quickly to oversupply in higher flooring grades, so it wouldn’t be unusual to see the correction continue with all grades. Regardless, we will continue to shop prices for our customers from mills throughout the United States.
Macon Hardwood wants to help you buy right by checking all the options to get the best price available. We will ask you lots of questions in order to determine what product works best for your specific application.
Consider all your options and don’t buy solely based on price. For example, you may have select grade northern red oak in mind for your project, but depending on the type of stain you choose, another less expensive product might suit your needs. See Red Oak vs. White Oak on our website to determine which option works best for your application.
Our goal is to help you find beautiful hardwood floors for your specific application. We will help you through the process, showing you all the options available to get the look you want at the right price.