|
Northern
Primary and secondary manufacturers continue to face challenges. Sawmill operators are contending with high-cost timber and logs relative to lumber sales prices. Cabinet, furniture, moulding/millwork, and flooring producers are dealing with slower demand for finished goods. For area mills, there is a closer balance between supply and demand for some species, grades, and thicknesses that is easing price pressures. For end users, excessive finished goods supplies are working down, and some buyers are more assertive with raw material purchases. Yet, markets are not settled for all items. Hard and Soft Maple remain oversupplied, with prices continuing to retreat. Other whitewoods are facing similar circumstances, such as Basswood, Aspen, and Birch. On the other hand, Red Oak prices hit bottom and are rebounding, driven in part by solid sales to China in November and December, which reduced kiln dried inventories. Concentration yards and secondary manufacturers are working to build #1C&Btr inventories amid low sawmill output of Red Oak.
Southern
Most area mills report log decks are unusually low even for this time of year, and total production is down. Too, more sawmill operators are processing a high percentage of industrial timbers because of weak low grade lumber prices and extremely soft framestock markets. The volume of grade lumber entering the supply stream is marginally sufficient to satisfy concentration yards’ needs, though most residential flooring factories have adequate raw material supplies. Meanwhile, demand for kiln dried lumber has not improved much. However, inventories have decreased, and replacement quantities may be delayed because of the lower rate of mill production and the extended time needed to dry lumber during the winter season. Therefore, purchasing, not necessarily consumption, of kiln dried lumber has improved.
Appalachian
The axiom that supply inevitably adjusts to demand is certainly true for the hardwood lumber industry. Production has trended down since late last summer, and the decline has accelerated more recently. This process has been uneven, with gaps between supply and demand closing faster for some species than others. At this point, markets for Hard and Soft Maple are still struggling to absorb current production, and prices are unsettled. Conversely, supplies of many green Red Oak, Walnut, and White Oak items are now lagging demand. The same is true for kiln dried Cherry and Red Oak. Prices are responding accordingly.
(Source: Condensed from Hardwood Market Report, February 3, 2023. For more information or to subscribe to Hardwood Market Report, call (901) 767-9216, email: hmr@hmr.com, website)
|
