National Hardwood Magazine - February 2024

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WOOD PROTECTION PRODUCTS With SOL-BRITE® E Feb. 4-7, Indianapolis IN Come see us at booth #600 Superior Protection, Iron Stain, and Sapstain Control 1-888-363-2628 | sales@uccoatings.com | uccoatings.com Buffalo | Kenosha | Portland | Seattle ONTARIO Continued needed to be done in Canada. “We have not started having that discussion (about cutting rates), because it’s too early to have that discussion. We’re still discussing whether we raised interest rates enough and how long they need to stay where they are.” Money markets expect the bank to begin easing as soon as April and for rates to fall 125 basis points in 2024. U.S. central bank chief Jerome Powell said the historic tightening of monetary policy is likely over, with a discussion of cuts in borrowing costs coming into view. The Bank of Canada had previously forecast inflation should hit 2 percent by end-2025 but Macklem - making his last public appearance of 2023 - told reporters it should be closer to target by the end of next year. “Inflation is still too high. If we don’t do enough ... ultimately, we’re probably going to have to raise rates even further to get it down,” he said. Earlier, in his speech, he had said future inflation declines were likely to be gradual. Macklem also expressed increasing optimism it could bring inflation back down to target but said the next few quarters would be difficult as high interest rates restrict the economy. “The 2 percent inflation target is now in sight. And while we’re not there yet, the conditions increasingly appear to be in place to get us there,” he said. Overseas, the European Central Bank said policy easing had not been brought up in a two-day meeting, and the Bank of England said rates would remain high for “an extended period”. “I expect 2024 to be a year of transition ... with the cost of living still increasing too quickly, and with growth subdued, the next two to three quarters will be difficult for many,” said Macklem, adding the jobless rate was likely to rise further. n QUEBEC Continued from page 10 had switched to this species when Poplar prices rose, but have now reverted back to using Poplar. Domestic demand for Cherry is reported as weak, with the Chinese market also ordering less of this species as well. Thus more caution is used when purchasing Cherry. Prices have gone down as a result. The regionally important Hard Maple continues to be in demand, but production has slowed, while kiln-dried Hard Maple demand is slightly better. Soft Maple is seeing competition from other species and so sales are not as they were for this species. The wood components and cabinet sectors are buying less Hardwood lumber than in previous years due to imported products readily available and other materials also taking the market share of Hardwoods. It is noted that production for most Hardwood species are low at this time. Sales of Hickory for the thicker stocks to established customers are decent, while the green 4/4 No. 2B and Better grades are slower. Prices are stable for this species. Many flooring manufacturers stocked up before winter set in with most having reached their desired inventory levels and so had reduced purchases heading into the new year. Red Oak orders were reported as decent for green No. 3A and Better grades. Kiln-dried demand is weaker due to weaker global business and also due to the holiday period we just went through. Demand for White Oak is steady, however, providing the orders is a challenge as lumber is not readily available. It is also a result of low sawmill production and strong competition from the stave industry for logs. Demand from the cabinet sector has remained steady for this species in the past year. Poplar output is meeting domestic demand, and users were not rushing to purchase it before the new year. Those exporting are finding it challenging to get orders from existing customers in Europe and the Far East, and price concessions are being offered to stimulate business. Walnut demand continues to be steady but varied according to areas contacted. Sales based on grades and special color selections are moving more readily. According to published survey results on trends, the outlook for wood components remains relatively positive, especially for manufacturers of products used in interior applications, such as cabinetry, casework, closets, and furniture. And while solid wood remains the dominant substrate for these components, the popularity of composite panel products continues to grow. Warm neutrals, lighter wood tones and earth tones top the trends list for the next three years, according to respondents in the NKBA/KBIS 2024 Kitchen Trends Report. Texture is also “in.” As for species choice, Hard and Soft Maple, White and Red Oak, Walnut, Poplar and Cherry remain popular, with Hickory and Pecan also strong in items such as flooring and other millwork. For industrial products, wood continues to be a dominant material in many products, including crossties and pallets. This is encouraging news for the Hardwood industry as we move into 2024. n 60 FEBRUARY 2024 n NATIONAL HARDWOOD MAGAZINE www.RealAmericanHardwood.com/industry www.RealAmericanHardwood.com/industry FEBRUARY 2024 n NATIONAL HARDWOOD MAGAZINE 61