Red Oak Trade

During 2005, the USA exported over $225 million of red oak sawn lumber and over $28 million of red oak veneer, making red oak the third most important American hardwood species in international markets. The bulk of this export, however, was not shipped to Europe.

Canada is actually the largest market for American red oak, much of which is re-exported. Mexico is also an increasingly sophisticated market for furniture and flooring in its own right and a major re-exporter. After Canada it is the largest single market in value for American red oak, having consumed 77,000 cubic meters, worth $31 million in 2005.

As a region, Pacific Rim (Greater China, Hong Kong, Taiwan, Japan, South Korea, Singapore and Australia) imported 83,000 cubic meters of American red oak worth $41 million. This marks a decline in value from 2004, but interestingly the volume consumed there increased, suggesting that manufacturers are now using lower-grade material for flooring, which typically utilizes #2 Common, and as a core material for furniture destined for export markets. The red oak that is shipped to Europe tends to be in the higher grades reflecting the higher value and bespoke approach to furniture and joinery produced in Europe. It is in the higher grades where the US hardwood industry has the capacity to sell more in exports markets.

The Middle East is also a major export destination for red oak, having consumed 24,000 cubic meters of red oak worth $17 million in 2005. As in Greater China, AHEC believes that this is primarily destined for domestic flooring markets and export-driven furniture markets. Major construction activity throughout the United Arab Emirates, the Gulf States and Saudi Arabia is fuelling some of this consumption as well.

As an affordable, attractive species, red oak is being used to create cutting-edge designs the world over. Europeans are no strangers to American oak as white oak is the most important export in terms of volume and value accounting for 48% of all exports every year to the EU25. So here is an opportunity to exploit a relatively new American species as far as the European market is concerned and join the world in uncovering one of America’s best kept secrets.

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