National Hardwood Magazine - June 2017

U.S.A. TRENDS Supplier

U.S.A. TRENDS Supplier news about sales, labor, prices, trends, expansions and inventories LAKE STATES A steady market for Hardwoods is being described by sources in the Lake States region, though some trouble spots remain a constant factor. From a salesman in Illinois the comments were that, “The market is, and has been, good for us for the last couple of years. Right now our best sellers are all species in 4/4, 5/4, 6/4 and 8/4, including No. 1 and No. 2 Common Walnut. We are selling it sometimes 90 days in advance of it being dried and ready for shipment.” Big sellers for his operation also include 4/4 Northern Red Oak in No. 1 Common grade and local shipments of 5/4 Yellow Birch No. 1 Common and SAP/Better. The Brown Maple in Select and Better and SAP/Better are also selling well. He stated, “For the last year we have been selling our SAP/Better Brown Birch items well in advance of their production.” According to this source, at some U.S. ports routing/shipping lines are struggling to shorten lead times on shipments to less than a month. He said, “I’ve heard that prices for ocean freight have been rising since the start of the year. NORTHEAST Supply and demand is reportedly in balance in the Northeast region, according to lumber sources contacted. A West Virginia lumber representative called the market “steady, except for FAS Hard and Soft Maple. The domestic demand for these two species is really starting to slow down. We saw that trend begin with FAS Hard Maple last year, and now FAS Soft Maple is following suit. “Also, White Oak logs have primarily been selling to stave manufacturers. They really don’t want the lumber and are willing to pay much more than our customers who do. So they buy up the available White Oak before anyone else in order to make barrels and such.” Additionally, this contact said that his business has not experienced high volume sales of Common Grade Cherry, which they carry. As for how his customers are faring, he commented, “Over the last several years, it isn’t that our customers, many of which are distribution yards, have really grown since the Recession. However, they have returned to nor- Please turn to page 60 Please turn to page 61 WEST COAST Sources on the West Coast are reporting a steady and predictable market for their Hardwood lumber products. In Northern California a salesman who works at a large distributor stated that winter was slow to exit the region. “The snow made it hard to meet deadlines for shipments into Canada but some years the weather just doesn’t cooperate.” The Hardwood species currently selling best for this contact are Poplar, Maple and Cherry. “Oak and Alder are following right behind, though,” he noted. Selling to an assortment of end-use manufacturers that make cabinets and high-end furniture, the source was pleased with current prices in the marketplace. “When the buyers have confidence it means the whole market prospers. The cabinet manufacturers in my area are saying their residential customers especially are staying busy, with commercial business steady as well.” Oregon has seen steady prices so far in 2017, a source in the state commented. “Our distribution hasn’t seen much SOUTHEAST Lumber suppliers in the Southeast region delivered upbeat reports regarding current market activity for upper grades as well as what they anticipate in regard to customer demand over the next six months. Some contacts noted seasonal rains didn’t dampen production of green lumber this spring and all noted decent log decks as summer approaches. A Kentucky lumber representative defined his best sellers as FAS Poplar, 4/4 No. 1 Common and Better Red Oak, 8/4 FAS Red and White Oak, and 4/4 and 8/4 No. 1 Common/Better Walnut. He said overall the market is solid for No. 1 Common and Better products he handles, regardless of species. However, sawmills that produce primarily industrial lumber, as well as No. 2 Common and lower grades, including crossties, pallets, cants and residuals, have been experiencing a sluggish market. The Kentucky spokesman echoed that observation, adding that in his area, the lower grade markets “are simply poor currently.” He has experienced no transportation issues when us- Please turn to page 62 Please turn to page 63 8 JUNE 2017 NATIONAL HARDWOOD MAGAZINE

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