Everyone is hoping that prices for Ipe reduce as inventory increases in Brazil and demand slows due to season on both continents.
HOUSTON, TEXAS, USA, October 1, 2018 /EINPresswire.com/ — Some of the largest exotic lumber companies in the United States ran out of much of their Ipe inventory. In fact as this article is being written some are still out. What people do not always understand about Ipe is that there is different times of year that the lumber is heavily purchased and brought out of the forest. The climate, rain, and rivers do not allow for its exportation easily year round. A lot of people are unaware that there are these seasons to purchasing Ipe hardwood is based on these factors. The cruel irony is that while Ipe is the most highly sought wood in the United States for decking, the season that it is historically cheapest to purchase and most available is the exact opposite in Brazil. This has little to do with the demand and everything to do with the availability in Brazil.
Importers have to determine supply and demand in advance to ensure a successful year. This year the price of Ipe rose in most circumstances over 20%. The demand every year is higher but the availability does not seem to be increasing. Making Ipe more and more valuable than ever before.
We are seeing in Brazil that while historically the prices decline in 4th Quarter and 1st Quarters of the years this year may be very different. For a wood that lasts 3 times longer than most any other wood, it is no wonder that the demand is so high. Early this year Ipe Woods USA, President issued an email to be disseminated to its customers warning them of this price hike. Some companies did heed these warnings and bought before the prices went up, while others thought perhaps it was a ploy to make a faster sale. Regardless, the prices did go up and it left some contractors and projects in jeopardy or looking for a cheaper alternative to Ipe.
Ipe Woods USA also issued a warning on their site. Telling people to watch out for quotes from companies that had no inventory. It doesn't matter how much they are quoting on lumber they don't have. Shortly after this warning was made public one of the competitors started adding a disclaimer to their quotes.
What will be in store for 2019? Time will tell, but no matter what happens Ipe is still king. People that want the best find it worth it to pay the extra and ensure a deck that can last a lifetime. After reviewing many of the competitors online we see that some companies have left their pricing to appear low, these are the same companies that have no inventory also. So it will be interesting to see what happens when they finally get stock back.
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Source: EIN Presswire