National Hardwood Magazine - April 2021

CANADIAN TRENDS News

CANADIAN TRENDS News from suppliers about prices, trends,sales and inventories ONTARIO QUEBEC With the cold and stormy weather hitting across most of the country at the time of this writing, it made it difficult to get into the forests, and so some sawmills felt the supply of logs were lower than expected for this time of year. As such, output was not meeting market needs for certain species. There is still a labor shortage due to CO- VID-19 and maintaining social distancing requirements in operations. Also, the U.S. housing demand is putting a strain on supplies of Hardwood finished goods. This is good news for secondary manufacturers of cabinets, flooring, mouldings and millwork, as it is keeping these businesses busy. Prices of Hardwoods have, as a result, increased. Contacts note interest in pallet lumber cants has improved as well. Ash demand, noted some contacts were good, especially for the upper grades. Sawmills and wholesalers are shipping full green productions, although Ash production wasn’t very high over the winter months. Aspen is the species that some secondary manufacturers and wholesalers rely on during the winter months to carry their inventories into spring. Although output increased, many mills focused on Hard Maple and other higher valued species over Aspen. So, the supply of Aspen is not meeting market needs. Demand for kiln-dried Aspen, contacts noted, was mostly steady, but inventories were thin. Birch is seeing high activity due to the strong home construction and remodeling markets in both Canada and the U.S. Demand for cabinets, furniture, mouldings, millwork and other components improved the sales of this species. Sawmills and wholesale contacts state they are shipping total production. When the pandemic hit in March 2020, inventories of Basswood were ample, as was the case for other species. Throughout the pandemic, sales were reduced, and supplies of Basswood were high until the third quarter of 2020. The production of this species contracted during the course of 2020, but buyers are more active now. In- As we headed through the cold snap of February, contacts noted most domestic markets were performing well. There was good demand from truck trailer flooring producers and pallet manufacturers and wholesalers. Sales to cabinet manufacturers and residential flooring were good as the home sale markets both in Canada and the U.S. were doing well, as was the home building and renovation markets. Supplies of lumber and logs are somewhat tight in most areas, noted contacts, thus contributing to a vibrant market environment. Shipments to China had slowed, as normal, ahead of the Chinese New Year. The regionally important species Hard Maple is now in high demand but with limited supply. Sales to cabinet and wood component manufacturers have increased, with Hard Maple going to other secondary products, including furniture. Production is struggling to keep pace with demand, and prices are therefore escalating. Soft Maple has been good but not as good as other species such as Red Oak, Hard Maple and White Oak. It is holding its own however. The upper grades were moving well, but interest in the common grades has improved in the last months. Demand from furniture, wood component and cabinet sectors is bolstering sales. Demand for Red Oak has been strong on domestic and to U.S. markets. This has not been seen in some time, commented contacts. Some feel the remodeling market is the driver for this species. International markets are also noted as strong. Prices have also increased for this species as a result of rising demand. Green lumber production is also struggling to keep pace with buyers’ needs for all thicknesses and grades combinations. It is difficult to add any volumes to log decks, but sawmills are processing more whitewoods than Red Oak at this time. Domestic demand for White Oak is also strong. Since production was limited for some time, there is now limited kiln dried availability. Demand for green stock is reported as solid, but sawmill production is short of buyers’ Please turn to page 46 Please turn to page 47 8 APRIL 2021 n NATIONAL HARDWOOD MAGAZINE

Contact us today for competitive rates and - Unparalleled service since 1977! Lloyd Lovett - llovett@kingcityusa.com Peter Lovett - plovett@kingcitynorthway.com APRIL 2021 n NATIONAL HARDWOOD MAGAZINE 9