Import:Export Wood Purchasing News - February/March 2018
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Log Prices, <strong>Export</strong>s, Lumber Demand Among Southwestern<br />
Hardwood Manufacturers Club Meeting Topics<br />
Photos By Terry Miller and Zack Miller<br />
Toto Robinson and Parker Sternbergh, Robinson Lumber<br />
Company, New Orleans, LA; and Kristin and Jim Howard, Atlanta<br />
Hardwood Corp., Mableton, GA<br />
New Orleans, Louisiana–The Windsor Court Hotel, located here, was<br />
the recent site of the annual Southwestern Hardwood Manufacturers<br />
Club (SWHMC) holiday gathering and business meeting.<br />
The general mood at this<br />
meeting was upbeat with positive<br />
reports about the market for<br />
the lumber industry. For example,<br />
a lumber representative<br />
from Alabama said market<br />
activity in his area has been<br />
good. "Also, our log situation<br />
is adequate. FAS White Oak<br />
is strong, and all the Common<br />
grades in all species have sold<br />
well. I anticipate <strong>2018</strong> to be<br />
another good year.”<br />
Another attendee who exports<br />
commented, “China has been<br />
a life saver for these southern<br />
mills and it has helped with the<br />
domestic market due to the<br />
appetite that China has for U.S.<br />
hardwoods.”<br />
An executive based in Georgia<br />
that operates distribution<br />
and concentration yards said<br />
25 percent of their business is<br />
in exports. He expressed his<br />
concern for log exports also.<br />
Another executive that<br />
operates a yard in Indiana<br />
and Virginia said 70 percent of<br />
their U.S. hardwoods that are<br />
procured are sold in the export<br />
market. This firm is also involved<br />
in the import business and he<br />
said it is more competitive than<br />
what it used to be.<br />
The mill representatives all<br />
agreed that demand is good and<br />
they all look for lumber sales to<br />
be stable with perhaps some<br />
upward pricing pressure due<br />
to the fact most had very little<br />
kiln-dried inventory to work from,<br />
coupled with dry kilns not turning<br />
as fast now that winter has set<br />
in. The downward pressure for<br />
byproducts was expressed by<br />
all mills represented. Another<br />
subject that was discussed was<br />
the pressure being put on White<br />
Oak logs for both the export<br />
market and the stave mills, making<br />
it more challenging to get the<br />
lumber needed to meet demand.<br />
U.S. log exports to China<br />
alone through Sept. 17 were<br />
over 500 million board feet<br />
Bill, Cheryl and Alex Buchanan, Buchanan Hardwoods, Aliceville,<br />
AL; and Zach Miller, <strong>Import</strong>/<strong>Export</strong> <strong>Wood</strong> <strong>Purchasing</strong><br />
<strong>News</strong>, Memphis, TN<br />
valued at $825 million. Log decks at the mills for the most part were just adequate.<br />
Labor issues continue to be a problem for most mill owners and yards<br />
alike. Trucking has been a problem for some due to hurricane relief in Florida<br />
(001) 607-753-3393 • BPCONKLIN@GUTCHESS.COM • GUTCHESS.COM<br />
890 McLean Road, Cortland, New York, 13045 USA<br />
Bubba Lammons, All Star Forest Products, Fairhope, AL;<br />
Kellye Angelici, <strong>Import</strong>/<strong>Export</strong> <strong>Wood</strong> <strong>Purchasing</strong> <strong>News</strong>,<br />
Memphis, TN; Kevin Lammons, All Star Forest Products,<br />
Murfreesboro, TN; and Ginny and Robert Peterson, Keith D.<br />
Peterson & Co. Inc., Shreveport, LA<br />
Additional photos continued on page 8<br />
Continued on page 17<br />
<strong>Import</strong>/<strong>Export</strong> <strong>Wood</strong> <strong>Purchasing</strong> <strong>News</strong> <strong>February</strong>/<strong>March</strong> <strong>2018</strong> Page 7