National Hardwood Magazine - January 2024

CANADIAN TRENDS
News from suppliers about prices, trends, sales and inventories
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ONTARIO
QUEBEC
Heading into a new year, we wonder how businesses
will fare in the Hardwood sector and elsewhere. Production
and demand of Hardwoods is changing, and is
keeping one on their toes to make a profit, or stay afloat.
As statistics have reported both in the U.S. and Canada,
production has been in a downward trend since 2022
and continued throughout 2023. Those producing Red
and White Oak, and Hard and Soft Maple are struggling
to get logs, and buyers’ needs for many grades and
thicknesses are not being met. Also, secondary manufacturers
who use these species are controlling their inventories
as consumers curb their purchases for finished
goods, and due to inflation and higher interest rates.
Some contacts noted having ample supplies, however,
such as for Basswood and Aspen.
Certain areas contacted stated that Ash supplies are
barely adequate to meet demand. Prices are firm. Some
say that kiln-dried business is not strong but is keeping
inventories down for many grades and thicknesses.
Demand is reported as slow but steady for kiln-dried
Aspen. Inventories are sufficient to meet the market’s
demand for most grades and thicknesses. Green production,
noted some contacts, is not very high, but demand
is on the slow side as well. Some sawmills struggle
to find customers for total Aspen production.
It was commented that certain sawmills limited Basswood
log purchases and so production for this species
was down. Green Basswood supplies outpaced needs
for most grades and thicknesses.
Birch demand, a species often used in Hardwood
products such as furniture, millwork and moulding, flooring
and cabinets, has been down due to slower housing
construction and renovation markets. Activity has slowed
for businesses in these sectors and so it has affected
Birch sales. Green lumber markets are not strong either.
Mill output is controlled, and is closely balanced between
developing supplies and market needs. Contacts noted
that kiln-dried Birch inventories are sufficient to meet demand.
Prices have also gone down for most grades.
The U.S. Thanksgiving holiday, hunting season and
Christmas holiday disrupted production and business
activity for those in the Hardwood industry. Businesses
were busy preparing their log decks and making operational
plans as to production schedules, and planning
orders of supplies needed for their particular business
needs. Several contacts were seeking new sources of
supply to work around species shortages of various
grades and thicknesses. Items identified in short supply
were Hard and Soft Maple, White Oak and upper grade
Red Oak for green stocks. Some end users stated they
had ample supplies of Basswood and Aspen for their
needs.
It is customary at this time of year for markets to soften.
Wholesalers and secondary manufacturers reported
weak sales as we come out of the holiday period. Their
inventories were sufficient to meet current and shortterm
needs. Pallet manufacturers expect sales to decline
for finished goods at this time.
Production was lower for Ash, but decent. Thus, demand
held up well with mills shipping developing supplies.
Prices edged higher for the No. 1 Common and
Better grades. Kiln-dried business was also decent, but
inventories were not high, with pricing steady.
Depending on regions contacted, Aspen was getting
mixed reviews. For some it was not doing so well with
demand being weak for some time with prices responding
accordingly. Sawmills processed Aspen at a reduced
rate, thus prices eased pressure on green stocks to a
certain extent.
Basswood sales were down as this species is in less
demand from secondary manufacturers whose business
has also seen a slowdown, and also due to competition
of other wood species and non-wood material products
being substituted in finished goods rather than using
Basswood. Contacts say it is hard to find new orders for
this species. Sawmills are also limiting their production,
however, in certain areas, supplies are outpacing market
demand.
The regionally important species Hard Maple is see-
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8 JANUARY 2024 n NATIONAL HARDWOOD MAGAZINE RealAmericanHardwood.com/industry
RealAmericanHardwood.com/industry
JANUARY 2024 n NATIONAL HARDWOOD MAGAZINE 9