National Hardwood Magazine - July 2019

TARIFFS AND NARROWED LOG

TARIFFS AND NARROWED LOG SUPPLY ARE TOP OF MIND FOR REPRESENTATIVES OF THE HARDWOOD INDUSTRY By Matthew Fite Brandon Clark Bucky Pescaglia Robert Chase Jr. Wendell Cramer Bruce Dahn Joe Gori Joey Josey Robert Kaebnick (Editor’s note: National Hardwood Magazine recently contacted manufacturers and suppliers for comments as to how the Hardwood markets are unfolding so far in 2019. What follows are their first-hand accounts of the positives and negatives currently facing their operations.) Brandon Clark Clark Lumber Co. Red Boiling Springs, TN So far this year in the Hardwood markets, there has been uncertainty on any items that have been going to China. However, we are pretty steady in the U.S. and Europe. Best sellers have included 4/4 Poplar in all grades, 4/4 Hard Maple FAS and No. 1 Common and 4/4 Soft Maple FAS and No. 1 Common. Regarding transportation, we have our own fleet of trucks and can use them to move local loads. We have two companies in Nashville that can take care of the export shipments. Market conditions have not yet necessitated offering new products. 24 JULY 2019 n NATIONAL HARDWOOD MAGAZINE

Bucky Pescaglia Missouri-Pacific Lumber Co. Fayette, MO The first part of this year has been challenging. The reduction in demand from the Chinese market over the last year has increased the competition for the rest of the lumber markets in the world. Supply and demand is out of balance for many items resulting in lower prices. FAS+F1F Walnut in all thicknesses is still moving well but at lower prices than in the past year. Silver Leaf Soft Maple sales in all thicknesses and grades have been strong domestically. Truck availability is better than last year but still not abundant. Congestion on the rails and at the ports continues to be an issue. Hal Mitchell Ray White Rob Paradise Ruth Cardin Larry Mether We always examine new ways to create more value to our customers. Offering more proprietary grades and specialty width sorts is one way we have maintained market share. We have also been looking into more mechanisms in our processing as we work to address the very low unemployment rates. The extended period of poor logging conditions has hampered our ability to bring the log prices back down to match the lumber markets. None of us want to run out of logs, so we have kept the prices artificially higher than they should be. Log exports continue to be a problem for our area, too. The smaller diameter Walnut logs that are being harvested and shipped overseas are eliminating our next harvest. We cannot profitably saw these small logs, so they have historically remained in the woods where they are able to grow into a more valuable tree. Hopefully the softening prices for the lower grades will help end this practice. Robert Chase Jr. Quabbin Timber Inc. Rutland, MA We have had a very mixed start to the year. Lumber has been moving at a fairly steady pace, but prices and what’s moving have been all over the place. We are just taking every week as it comes. Overall volume is up a bit, but we feel like we are always waiting for the next shoe to drop! Walnut has cooled in a major way, both in volume and in price in all thicknesses and grades. 4/4 Hard Maple has been hit-or-miss. Kiln-dried prices are soft but moving. Green has been like a roller coaster. More Maple is on the market than we have seen in a very long time. It looks like it will be short-lived, and when it dries up, I think we could be in trouble. 4/4 Soft Maple has been strong the past few months, but we worry that it, too, will be short-lived. Freight has been expensive, but we have been able to move lumber as long as we are willing to pay the price. Please turn to page 44 JULY 2019 n NATIONAL HARDWOOD MAGAZINE 25