Softwood Forest Products Buyer - November/December 2023

Southeast Business Trends
Nick Mancini
Editor
Across the Southeast region, lumber sources said that
their markets are fair and that at the time of this writing,
sales were slowing down some.
In Mississippi a lumberman said that while his sales
are currently feeling weak, the market overall has been
fair. “Our sales are pretty weak right now, but I think
interest rates are starting to come into play more and
more. Consumer confidence is down, and people are more
cautious.”
He mentioned that while they are not doing as well as they were six months
ago, it is not by much. “We are going to see more of a change over the next six
months than we did over the past six months,” he added.
His company only offers Southern Yellow Pine in all grades, handling primarily
boards and timbers.
He noted that he sells to treaters, building suppliers and contractor yards. When
asked if they have recently shared how their sales are doing, he said, “They seem
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Ontario/Quebec Business Trends
By Richard Lipman
Guest Writer
“The market continues to be a struggle," according to
a Quebec SPF manufacturer, "with consumers dealing
with high interest rates and an abundant supply of lumber,
especially in eastern Canada. There is a lot of pressure on
price. The best way to qualify what is successful is if you
are able to achieve a certain level of pricing, that is not really
relevant with the print price, but what is relevant with
the customer per se, you get some business. There is a lot
of lumber flowing in North America, but the printed price
is becoming more distant right now, as there are deals being made that are often
substantially under the numbers being published every week. It is going to remain
so for the foreseeable future."
Another Quebec producer lamented that “not much has changed. If something
is in demand, if the guy needs it, he buys it, but the demand is not what it used
to be. Customers are definitely not in speculation mode. They buy what they see
in front of them and they will not buy beyond that. This could go on for a while.
Fundamentally you don't have a lot working in the favor of the lumber market
when you really think about it.
I mean the yields are not in our
favor, and of course affordability's
not in our favor either, so it's
tough out there. It's one here, one
there. You have to get out there,
you have to find needs and you fill
those needs. I think the price tells
the whole story. We're down 70
percent from the top, if not more.
So I think that really tells the
whole story."
Noted an Ontario wholesaler,
“From the mill’s point of view,
budgets have been set for the year
from last January, and it is too late
to change things, so there are not
going to be any substantial curtailments
or anything that is going to
affect production. What is going to
be interesting to see is in January.
How are the mills going to react
for the 2024 budgets and whether
there is going to be less lumber
available to try and balance things
out a little bit, which is what is
missing in the industry at the moment,
towards the customer rather
than the mills."
Reported a Quebec manufacturer,
“2x4 offerings in either
studs or No. 2 specific lengths like
the 9-foot and 16s and a couple of
other ones are very popular. 2x6
remains very difficult, which is
really odd normally for this time
of the year. It should be flowing a
little bit better. We constantly need
to discount it. 2x4 No. 2 studs are
moving well and keeping the market
going at this point in time."
A Quebec wholesaler suggested
that “we would have anticipated
the big fire season to have affected
the market, but so far it hasn’t. It
is perhaps because the market is
a little softer than expected, we
haven’t really seen that coming
through in the end products just
yet, even in the two regions most
Continued on page 51
SOUTHEAST TRENDS— Continued from page 38
to be seeing fewer sales.”
He added that he believes that going forward the market is going to be tighter
for a while. “We are coming off some of the lowest numbers that we have seen in
quite a while,” he said. “We have already put floor prices on our products, and we
will do it again if we have to.”
In Alabama a lumber spokeswoman said that their sales have been doing well
the past few weeks. “I haven’t had any problems moving my inventory, but it does
seem like my sales are starting to slow down. I think people are nervous about
buying lumber right now, so they are buying on a need-to-basis,” she added.
She noted that they are doing a little better than they were six months ago, but
added that it was nothing to brag about.
Her company offers Southern Yellow Pine in grades Prime, Nos. 1, 2, 3 and 4 in
thicknesses of 2x4, 2x6, 3x4 and 4x4. They also offer PET material. She mentioned
that they only run timbers when they are producing PET material, but that
they run 2x4 and 2x6 on a regular basis.
She said that they sell to treaters, truss and pallet manufacturers and wholesalers.
“Most of the people that I have talked to recently have said that their sales are
somewhat improved but they are not sure how long it will last.”
She added that she is looking forward to the market stabilizing, “Whether it is
up or down, I’m ready for a stable
market so we are able to plan accordingly.”
In Florida, a lumber saleswoman
said her sales have been steady
and she has noticed that they have
been busier over the course of the
past month. While they are slowing
down at the time of this writing,
they are still steady.
“We are doing better than we
were six months ago,” she stated.
“It seems that the market in general
is doing better overall.”
She said that her company offers
Southern Yellow Pine in 1x4 and
2x4 and that they pull grades No. 1,
2, 3 and 4, as well as an MSR2850.
“We sell mostly to brokers, very
little direct,” she said, adding that
they have not mentioned to her how
their markets are doing. n
NORTHEAST-
TRENDS— Continued
from page 36
that demand in my opinion.”
A source in Maine had similar
conclusions. “Demand isn’t the
issue right now,” he explained.
“Interest rates are through the roof
and the banking requirements are
tight.”
As for his customers' markets
the contact said, “They’re moving
slower than they were earlier this
year. Some of that is seasonal of
course. The building industry takes
a hit traditionally during the later
part of the year. Specifically in this
region it gets colder earlier and
people put plans out until the first
quarter of the new year.”
An Eastern White Pine supplier
in Maine said high lumber prices
continue to be a factor and other
parts of the forest products industry
are softening. “The low grade
and industrials are soft on our end
but all of our uppers and anything value-added is moving and prices are firm,” he
said. The source said his customers report increases in demand for Eastern White
Pine. “SPF and Hemlock are down but Eastern White Pine is holding steady and
in some cases hitting record levels at the mill,” he offered. When asked about
his customers business the source commented, “Order files remain strong for our
customers. Mill production is down slightly due to labor issues.”
A Connecticut lumberman said that his market has started to wane. “While my
sales are doing okay, they aren’t as strong as they were this time last year,” he continued,
adding that the pace at which his sales are, at the time of this writing seem
to be more of a normal pace of business than the industry as a whole has seen over
the past few years.
His company offers Eastern White Pine, Douglas Fir, Western Hemlock, Ponderosa
Pine and Sugar Pine. “Eastern White Pine Selects, when we can get them,
move the strongest for us,” he stated.
He noted that the availability of certain grades of lumber has been the biggest
factor that has affected the industry, causing the sales to be flat. n
INLAND WEST TRENDS— Continued from page 36
trying to hang in there and they have been for the last six months.” n
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