Northern Area
Conversations with sales teams point to continued weakness in grade hardwood markets. However, this week’s surveys show there are almost as many items listed as bestsellers as worst sellers. But the devil is in the details. The bestselling items consist of Ash, Poplar, Red Oak, White Oak, Walnut, mat timbers, and railroad ties. A few also state pallet cant business is better. Among the worst selling items are species critically important to the success of Northern businesses – Hard Maple, Soft Maple, Basswood, and Birch. Yet, there was a bit of good news shared this week about both Hard and Soft Maple. Some suppliers had better success obtaining large volume orders for these species. The reasons given for the rise in new orders were that end users allowed raw material inventories to decline because of weak finished goods orders and declining lumber prices; buyers now need to replenish on hand supplies. Also, many domestic and international customers believe prices have reached or are near bottom; low production this year has many end users concerned about grade lumber availability and the impact it might have on prices moving into fall. Low prices for lumber are reventing many sawmill operators from processing Maple. In fact, a number of primary producers state that running mills at current log and lumber prices makes less sense than shuttering operations until higher prices prevail.
ASH: A few mills reported sizeable Ash cuts the past few weeks, primarily because sawmill operators are dodging Hard and Soft Maple logs. The boost in Ash output is not overwhelming the marketplace but is shifting the supply/ demand balance to supplies. Reported prices for green 4/4 through 8/4 Fas&Sel are lower, requiring reductions to the listings. As noted in the opening comments, most sales companies indicate markets for kiln dried stocks are decent and are keeping inventories manageable. Transactions point out few changes to pricing this week.
ASPEN: Area mills are rotating whitewood logs as quickly as possible to avoid stain damage. This is true for Aspen, and green lumber supplies have edged up. Production is meeting or exceeding buyers’ needs. However, concentration yards and secondary manufacturers are absorbing mill output at prices in line with the #2B&Btr listings. There is more kiln dried Aspen available to the marketplace, also. Prices remain pressured, though any downward movement is confined to the #2A&Btr ranges.
BASSWOOD: It has been noted numerous times in past issues that demand for Basswood has been negatively impacted by slow overall demand for grade lumber and shifts from use of solid lumber to MDF, plywood, and non-wood materials in finished goods. That trend has not changed, and most sellers state that Basswood business is slow and highly competitive. Information reduces the kiln dried 4/4, 5/4, and 9/4 Fas listings and noted ranges. Previous changes have the common grade figures in order for now. Mills and resellers are struggling to find buyers for total green production. Weak demand for kiln dried stocks has concentration yards cautious with purchases. However, the green #2B&Btr listings are unchanged in this issue.
BEECH: The marketplace for Beech is confined, and not all Northern mills regularly process this species. There is ongoing business for Beech, but demand has declined. Reported prices slipped, requiring decreases to all thicknesses of #1C, #2A, and #3A.
BIRCH: Birch production has not significantly increased, but demand has dropped. Most concentration yards and secondary manufacturers have ample supplies and are purchasing sparingly. Reported prices for green stocks are lower, with the 4/4 through 8/4 #2A&Btr listings falling. Kiln dried markets are controlled, too. Inventories are high, and competition for orders is intense. The 4/4 #2A&Btr listings and most ranges are reduced.
HARD MAPLE: A number of sawmill operators report that they are dodging Hard Maple to the extent possible. However, in much of the region, it is impossible to run a mill efficiently without sawing this species. Green lumber supplies are outpacing buyers’ requirements. For both color designations, the 4/4, 6/4, and 8/4 Fas&Sel listings fall, and the 5/4 and 8/4 #1C figures decline. There was a bit of good news for kiln dried Hard Maple this week - the volume of sales increased, and contacts indicate the gains were demand driven. Nonetheless, prices remain pressured, and transactions show that prices continue to slide. Information takes down the #1&2 White 4/4 Fas, 6/4 Fas, 8/4 Fas, and 4/4 through 8/4 #1C figures. Additionally, the Unselected 4/4 #1C&Btr and 5/4 #1C listings and most ranges drop.
SOFT MAPLE: There has been an extended lull in US produced finished goods sales. Secondary manufacturers have not needed vast volumes of grade lumber, and mill output has been exceeding demand for some time despite cutbacks in production. Kiln dried inventories are elevated, and prices are trending down as a result. The 4/4 Fas figures fall for both color designations. The Sap&Btr 6/4 #1C&Btr and 5/4 #1C listings and noted ranges also decline. Green prices are under even greater pressure. All of the Sap&Btr and Unselected listings are decreased this week.
RED OAK: More sales companies are listing Red Oak as a bestselling species and taking it off their worst selling list. Domestic business is relatively flat, but international sales have picked up. Too, kiln dried inventories have edged down in this and other regions the past few months. Transactions point out a slight increase in pricing to Southeast Asia, while prices to other global and local customers are flat. The kiln dried #2A&Btr listings are reflective of activity and hold the published figures in check. Meanwhile, mills and resellers are shipping total green output. Reported prices are consistent with last week, allowing the #3A&Btr listings to stand.
WHITE OAK: Despite European vacations, demand for upper grade White Oak from European customers is good, and domestic business is holding up well, all while Fas inventories are low. Reported prices for kiln dried Fas have increased over time, but no changes are warranted to the figures this week. Likewise, the #1C and #2A listings and ranges stand pat. Interest in green White Oak lumber is solid from most market sectors, and information shows the #3A&Btr listings are in order.
PALLET LUMBER, CANTS, TIES, & BOARD ROAD: Wooden pallet and container manufacturers are not as busy as they would like to be, but there is a steady flow of wooden pallets moving through the distribution chain. Reported prices are weak, though no changes are required to the pallet lumber or cant figures at this time. Railroad tie inventories are edging up, as more mills produce a higher percentage of ties rather than lumber and cants. Reported prices for 7x9 ties are steady. Demand for board road is flat, and mills that regularly produce this item are meeting buyers’ needs. No changes are warranted to the listing or range.
Southern Area
Kiln dried lumber inventories in this region have increased somewhat but are not extremely high. However, ready to ship inventories are above the market’s immediate needs for most species, grades, and thicknesses. The exceptions are #1C&Btr White Oak. Meanwhile, low sawmill production is keeping green lumber prices relatively stable despite tepid demand for grade lumber. Industrial product markets are mixed, with railroad tie business strong, and pallet business challenging.
ASH: Domestic and international markets for this species are not particularly good, but kiln dried Ash inventories are not very high, either. There is a close balance between supply and demand. Any price changes noted for #2A&Btr are within the published ranges. Mills and resellers are shipping green production, and information shows few changes to #1C&Btr pricing. However, the 4/4 through 8/4 #2A listings decline this week.
COTTONWOOD: Domestic green #1C&Btr markets are solid, with most buyers needing additional lumber. Reported prices are firm to higher, allowing the #1C&Btr listings to stand. Interest in low grade Cottonwood and Cottonwood cants is lethargic, though few price changes are noted. Kiln dried business is in line with last week but is not especially strong. Inventories are sufficient to satisfy buyers’ requirements, and prices are flat.
SAP GUM: There has been improvement in demand for Sap Gum lumber, especially for random length material. Some end users allowed inventories to decline last year and the first part of 2023 and are now replenishing on hand supplies. Tie siding is a bit more challenging for sellers to ship than random length lumber, though all is moving. Reported prices are steady and hold the #2B&Btr listings in check.
#2A&3A OAK: Green #2A&3A Oak supplies are only marginally adequate to meet solid wood flooring manufacturers’ longer term needs. Mill closures and some sawmill operators processing Pine and Cypress have cut into hardwood production. Too, strong demand for railroad ties is affecting low grade Oak lumber output. Reported prices are firm to higher, but previous changes have the #2A&3A Red and White Oak listings in order for now.
RED OAK: Domestic and international Red Oak sales are seasonally slow. At the same time, drying conditions are speeding up the drying process, leading to gains in kiln dried inventories. Weak demand and rising inventories have boosted sales competition. Reported prices remain under pressure. However, only the top sides of the 4/4 Fas ranges are decreased. Falling kiln dried prices are impacting how much concentration yards are willing to pay for green lumber. This is most evident for 4/4 Fas&1f; information warrants reductions to the listings. Markets for #2A&3A are strong, but past increases have the published figures in order for now.
WHITE OAK: White Oak business is good. Most area mills are processing as much of this species as possible, however sawmill operators are struggling to source large quantities of White Oak logs. Green lumber production is not meeting buyers’ needs. Reported prices for 4/4 and 5/4 Fas&1f are up and lift the listings. Kiln dried prices are advancing for 5/4 Fas and 4/4 #1C, increasing the published figures for those items, along with the top sides of the 4/4 Fas ranges.
POPLAR: Poplar production is not exceptionally high, especially for summer, but supplies are meeting or exceeding tepid demand. Too, kiln dried markets are weak, causing some concentration yards to approach purchases with caution. The green 4/4 through 8/4 Fas&1f listings retreat. Meanwhile, kiln dried prices are under pressure, but past changes have most items in order. Only the 4/4 #2A figures are reduced this week.
FRAMESTOCK, CANTS, TIES, & BOARD ROAD: All surveyed companies reported slow framestock business this week. Air dried lumber supplies are high relative to demand. Prices have been pressured but are well represented by the Oak and Mixed Species ranges. Wooden pallet manufacturers state that business is decent. Cant inventories are elevated relative to demand. Reported prices are weak but consistent with last week. Tie production has increased, but so have tie insertions. Treaters continue to work to build inventories. Reported prices for 7x9 crossties are steady. Board road business is described as fair and limited to buyers and sellers with established relationships. Transactions point out stable pricing.
Appalachian Area
The green and kiln dried Appalachian price matrices registered fewer decreases the last two weeks than during most issues over previous months. This trend suggests – and industry reports confirm – that supply and demand are approaching equilibrium for most grade lumber items. While HMR’s estimate of July sawmill production is not yet finalized, preliminary information indicates production remained low. Many end users and distributors are now placing additional orders with lumber suppliers in the assumption that prices are at or near the bottom, and supplies could tighten later in the year. This particular outlook on pricing and supplies is true not only domestically, but for Chinese buyers as well. All of this is in spite of the fact that underlying demand for most hardwood finished goods has not improved.
ASH: Buyers and sellers indicate supply and demand for green Ash are well balanced. While sawmill operators have sufficient outlets for #2A&Btr production, sales to concentration yards are down a bit amid somewhat slower exports. Most pricing reported for green #2A&Btr is grouped around the respective listings, which are unchanged this week. Kiln dried Ash business is sluggish in North America. Exports have lost some momentum but are still substantial, particularly to China. Reported prices reduce the 5/4 and 8/4 Fas figures while leaving all the other listings and ranges intact.
BASSWOOD: This species has very little traction in the marketplace at present. Secondary manufacturers – including those in the window coverings and moulding/ millwork sectors – have ample Basswood inventories and are controlling purchases. The same is true for distribution yards that stock the species. Prices continue to respond to these unfavorable circumstances. The green 4/4 through 9/4 #1C&Btr listings decline. Kiln dried pricing is also unsettled, but last week’s decreases have the published figures in order for now.
CHERRY: For many years, most end users in the US and Canada have purchased this species either in small volumes or not at all. Demand has contracted all the more this year amid slower demand for cabinets, furniture, and other finished goods. Cherry exports to China were brisk in the winter and spring but have slowed this summer. Companies along the supply chain have responded by curbing production and purchases. Supplies are still elevated but are gradually being worked down. The only price changes this week are reductions to the green North Central 4/4 through 8/4 #2A listings.
HICKORY: Sales of green Hickory have cooled off of late, yet mills are generating enough orders to cover production. Reported prices are consistent with prior weeks, allowing all the listings to stand. Markets for kiln dried 4/4 Hickory are mixed. Contacts report slow sales and elevated inventories of #1C and #2A. However, most are satisfied with Fas business. Prices for green and kiln dried Hickory are soft, but no further adjustments are warranted to the listings or ranges at this time.
HARD MAPLE: The state of Hard Maple markets is perhaps best illustrated by examining pricing trends over the last year. Published prices for green #1&2 White 4/4 #2A&Btr Hard Maple are 58% to 60% lower than one year ago. The equivalent kiln dried items are down 50% to 58%. The combination of high cabinet and wood component imports; increased substitutions of other raw materials in leading Hard Maple applications; and slower finished goods sales are weighing heavily on demand. Prices in observed transactions show further reductions this week. The green Unselected 4/4 #3A&Btr and #1&2 White 4/4 #2A listings retreat, as do the kiln dried 4/4 through 8/4 #1C figures in both color classifications.
SOFT MAPLE: Demand for this species remains in the doldrums. Manufacturers of cabinets, components, furniture, and other products are purchasing tentatively, as most are well stocked for the current rate of usage, which has slowed during the course of this year. Reported prices were noticeably lower for green stocks this week, driving reductions to all the Sap&Btr and Unselected listings. For kiln dried, only the Unselected 4/4 #1C&Btr and Sap&Btr 4/4 #1C listings and ranges decline.
#2A&3A OAK: Markets are readily absorbing green 4/4 and 5/4 #2A&3A Red and White Oak production from sawmills. Residential wood and truck trailer flooring factories are assertively purchasing lumber from established suppliers, and many are reaching out to find new suppliers in hopes of bolstering receipts. Reported prices are mostly grouped around the respective listings.
RED OAK: The Chinese market is a major driver of demand for this species, particularly in the #1C&Btr grades. Chinese buyers placed more inquiries and orders for Red Oak in July than in June, but often at distressed prices. However, new information shows prices in some transactions are bouncing off the bottom. Meanwhile, domestic demand for kiln dried Red Oak is static. All of the kiln dried listings and ranges remain intact this week. Green #1C and #2A&3A Red Oak are moving better than Fas&1f, largely due to assertive purchasing by flooring plants. Drying operations are being cautious with #1C&Btr procurement because of repeated decreases in kiln dried prices that have occurred in recent weeks. The green 4/4 through 8/4 Fas&1f listings warrant reductions, with all the common grade listings holding steady.
WHITE OAK: Reports about White Oak business are overwhelmingly positive. Sawmill contacts state that green #3A&Btr sales are limited more by supply than demand. Likewise, drying operations are struggling to keep up with orders for Fas and certain #1C items. White Oak exports are well below year ago levels, but with so many high quality logs flowing to stave mills, upper grade and thick stock White Oak lumber production has fallen even more. Prices are firm to higher. The green 4/4, 6/4, and 8/4 Fas&1f listings advance, as do the kiln dried 4/4 through 8/4 Fas and 6/4 #C figures.
POPLAR: Domestic consumption of Poplar is holding up. It is a primary raw material for moulding and millwork producers, many of which are still experiencing solid business. Poplar is also used in myriad other domestic applications, and this diversity of markets is helping sustain overall demand despite lackluster exports. Supplies have increased as of late but are still manageable. Reported prices are down for some items though are holding steady for most. The green 4/4 Fas&1f and 4/4 through 8/4 #2A listings decline. The kiln dried 5/4 through 8/4 Fas figures also edge lower.
WALNUT: Overseas demand for this species has moderated the last couple of months, mostly notably in China. That market has become increasingly price competitive. At the same time, US distributors and end users are showing consistent interest in Walnut. Green prices are mostly clustered around the listings. Likewise, previous reductions have all the kiln dried figures in order.
FRAMESTOCK, CANTS, TIES, & BOARD ROAD: Upholstered furniture factories are well stocked with raw materials, including solid hardwoods and sheet goods for making frames. Oak and Mixed Species framestock prices are holding at previous levels. About 60% of pallet manufacturers surveyed this week describe raw material inventories as high, with the rest having adequate inventories. Most are being cautious with pallet cant and lumber purchases, though some have relaxed restrictions for primary suppliers. No changes are warranted to the cant listing or range in this issue. Treating plants are assertively purchasing 7x9 crossties amid seasonally strong outbound shipments of black ties to railroads. Transactions include some downward price movement, but almost all information is within the ranges. Board road production is limited in this region. Longtime producers have steady business at prices consistent with the listing and range.
(Source: Condensed from Hardwood Market Report, August 4, 2023. For more information or to subscribe to Hardwood Market Report, call (901) 767-9216, email: hmr@hmr.com, website: www.hmr.com)
|
|
|
Industry Spotlight: American Wood Fibers
|
|
|
Just outside of Clarks, Nebraska is a shaving plant for American Wood Fibers. They produce small, medium, and large flakes used for animal bedding under the brand America’s Choice. Family owned and operated, the company started in 1966 in Columbia Maryland and have grown to eight plants to the south and east of Nebraska and a two in California (11 total). They purchased Red Cedar of Nebraska in 1996.
Fire destroyed the location in March of 2015, and they rebuilt for their local employees. Currently operating with two shifts, they purchase cedar, cottonwood, and pine logs with tight specifications to fit them in the shaving mill. Whereas lumber mills need ‘pretty’ logs with little to no defect and deformity, the shaving mill can handle Eastern redcedar with moderate rot, dead knots and ingrown bark. They are limited to 6” of crook or bow per 8’ log. The top can be as small as 5” with a maximum of 40” in diameter. Pine and cottonwood have the same size specifications as cedar but must be sound with no rot.
|
|
|
|
The boiler that heats the dryer runs off sawdust. The triple pass drum dryer weighs 60 tons that has a fan at the end “sucking” material down as it dries.
|
|
Todd Bolig, Manager, stresses that on all species limbs must be flush cut with the log and the length be 8’ +/- 1 inch. He pointed out a small stack of oversize cottonwood logs that they are looking for a way to more efficiently split so they fit in the shaver and can stop being wasted.
They may pay a premium to offset transportation over 100 miles or provide trucking. So, if you have a project with a couple truckloads of 8’ logs here’s another potential outlet instead of a burn pile. There is no minimum size load! They buy by weight.
|
|
|
|
All logs - pine, cottonwood and cedar must have limbs flush cut with the log and the length be 8’ +/- 1 inch.
|
|
|
AWF shaves 100 tons of logs per day, each log yields about 50-60% dry fiber after the bark and moisture is removed.
|
|
Greg Gambrel is lead on Raw Materials for the Clarks facility. If you have some logs that might be a fit for them, please contact him. His office is in Marion, Virginia; office is (276) 243-1369 and cell phone is (276) 620-2458; ggambrel@awf.com; www.awf.com
Greg states that AWF is committed to supporting forestry in all the states in which we operate, such as participating in industry associations and taking part in events that help raise awareness.
|
|
|
Utilization Events and Resources
|
|
|
Husker Harvest Days – September 12-14, Wood River, NE (west of Grand Island 4.4 miles on W Husker Highway from US30). Look for NFS in the Natural Resources Building. Will have some biochar display on how-to make small batches to get your hands dirty (or not).
Wood Innovations Funding Opportunity
The Wood Innovations Grants Program, launched in 2015, stimulates, expands, and supports U.S. wood products markets and wood energy markets to support the long-term management of National Forest System and other forest lands. National focus areas include mass timber, renewable wood energy, and technological development that supports hazardous fuel reduction and sustainable forest management. The Notice of Funding Opportunity closed on March 23, 2023. The next application period will be in Fall 2023. More information and recent recipients are located at Wood Grants | US Forest Service (usda.gov).
Community Wood Grant Program
The Community Wood Grant Program, launched in 2020, provides funding for grants to install thermally led community wood energy systems or to build innovative wood product manufacturing facilities. The Forest Service expects renewable wood energy systems installed under this program to use the most stringent control technologies. The program places extra emphasis on assisting sawmills in economically challenged areas to retool or add advanced technology. The Notice of Funding Opportunity closed on March 23, 2023. The next application period will be in Fall 2023. More information and recent recipients are located at Wood Grants | US Forest Service (usda.gov).
Wood Products Infrastructure Assistance to Facilities that Purchase and Process Byproducts of Ecosystem Restoration Projects
Project funding may be used to establish, reopen, retrofit, expand, or improve a sawmill or other wood-processing facility in close proximity to federal or Indian lands that need ecosystem restoration and will generate byproducts. The emphasis is on areas of unnaturally severe high fire or insect or disease infestation with high or very high priority for ecological restoration. This program is funded by the Bipartisan Infrastructure Law. The next application period will be in Fall 2023.
More information and recent recipients are located at Wood Products Infrastructure Assistance Grants.
Bridge Funding Opportunity Program The intent of this funding opportunity is to support the establishment of temporary bridge rental/loan/cost-share programs with States and federally recognized Indian Tribes to protect water resources and reduce water quality degradation during forestry-related operations. This program is funded by the Bipartisan Infrastructure Law. A rolling application period will be used. The program is open and available for response with applications due on August 31, 2023 and December 31, 2023. Funding decisions will be made within 30 days of the due dates. More information and recent recipients are located at Temporary Water Crossing | US Forest Service (usda.gov).
(from https://www.fs.usda.gov/science-technology/energy-forest-products/wood-innovation)
Have you heard about Biochar and have questions? We just developed several factsheets for various industries and how biochar can be incorporated – for example to change one ingredient to a renewable resource. Watch for Spanish translations of each and a new how-to interpret biochar analysis report currently in the pipeline.
Find them on NFS website: https://go.unl.edu/biochar
|
|
|
Different Products – New Markets
|
|
|
|
Ever have an idea for a wood product you haven’t seen in production? Let’s chat about it. Give Kim a call/email.
|
|
We are exploring the idea of a webpage that would have sales and where hazardous fuels / forest stand improvement projects are occurring to facilitate the utilization of all material being removed from our forests. This would allow anyone with 1 tree to hundreds of acres to get the word out. Please email or call Kim to share your input on this effort. Timber Talk would continue to have formal timber sales listed.
|
|
FOLLOW US ON SOCIAL MEDIA
|
|
|
|
|
