National Hardwood Magazine - November 2013

Canadian Trends News

Canadian Trends News from suppliers about prices, trends, sales and inventories QUEBEC Several companies in the Hardwood industry commented that business over the summer months has been better than anticipated. With demand holding up for most grades and species, production was generally adequate, although there was not a great deal of built up inventory. From the market perspective, demand is slowly increasing. This is being brought on by improved housing conditions in the U.S., business picking up for railway ties and the oil and gas sectors, as well for export markets. Ash markets are adequate, but not robust, with buyers preferring a white uniform color. Demand is keeping very close pace with green and kiln-dried developing volumes. Aspen, on the other hand is reported as being flat, even though there is sufficient supply to meet demand. Basswood is seeing a firm market, with demand for high-end residential construction. Even with a lessened summer production for this species, supplies were ample enough to meet the growing demand. The regionally important Hard Maple remains a strong species for residences, and maintains its high fashion appeal. Demand for green Hard Maple is keeping pace with sawmill production. Some report obtaining specific items can be tight, affecting the lower grade lumber and for industrial timber. With prices rising over the summer for Hard Maple, other species were selected as an alternative. There existed a close balance between supply and demand of Soft Maple over the summer, and a downturn over this time was due to quality control to prevent stain in logs and green lumber. As for Hard Maple, there is a steady demand for this species by consumers, and the lighter colored Hardwood trend is continuing. Due to the increased housing activity in the U.S., demand continues to increase for Red Oak. Overseas exports are also a factor for increased demand of this species. Supplies are seen as slightly less than adequate to supply demand, with some items falling short. The flooring industry has increased its demand for No. 2A and No. 3A grades, with some carry over for No. 1C. The kitchen cabinet sector is also consuming a large amount of this species, as well as the tie and other industrial timber markets. This has resulted in prices being pushed higher. As for White Oak, most sales revolve around the common grades. There has been an increased demand on domestic markets in the residential and truck trailer flooring sectors. Exports, note contacts, also held up well over the summer. Depending on areas contacted, some reported that supply competition was fierce. Recent housing market sale prices were up 11.1 percent from a year earlier, which economists had not expected. Hardly anyone predicted a big mid-year bounce in home sales at the start of 2013, with last summer’s Canadian housing market calami- Please turn to page 44 ONTARIO Logging companies and sawmills ramped up production following the wet summer weather. Log supplies and mill output increased despite tight controls for processing whitewoods. The added volume supported the growing demand for all grades of lumber. The rise in U.S. residential construction fueled the demand for millwork, cabinets, furniture, flooring and mouldings. Certain areas across the province were also hit with floods during the summer months, resulting in an increased demand for repairs and replacement of these goods as well. On the flooring side, reports note that there is increased demand for residential and sports flooring made of Oak and Hard Maple. As a result of residential construction increases, the demand for pallet stock has also increased. Buyers are purchasing Ash for short-term needs, and some have noted a decrease in demand for this species. Reasons cited are the request for longer lengths, and preference to lighter colored Hardwoods. Production, however, is keeping pace with demand. Demand for Aspen, report contacts, has contracted slightly, with prices also noted as slipping. Basswood and Birch orders continue their strong performance on markets, with a steady production supply keeping pace with demand. Hard Maple production has also kept pace with demand over the summer months, providing adequate supply for most grades and thicknesses. Contacts noted that as a result of availability it generated sales competition. Prices were noted as having moderated for certain grades. With the flooring demand for this species, competing with the crossties for lumber, No. 2A and No. 3A supplies were stretched thin. Soft Maple market conditions resemble those for Hard Maple. Market demand for this species was sufficient to absorb production. However, it was noted there was very little inventory left over. Contacts noted that Red Oak had performed much better than expected over the mid and late-summer periods. The cause of the increase is attributed to increased sawmill production and a rise in demand for this species from flooring, industrial lumber, timber markets and exports. White Oak supply and demand remains balanced, noted some contacts. As was expected, Canada’s annual inflation rate edged down recently, ensuring that the central bank would not raise Please turn to page 44 8 NOVEMBER 2013 ■ NATIONAL HARDWOOD MAGAZINE

Lebanon Oak Flooring has been a long time family owned business dedicated to the highest standards of quality and service. This is an aerial view of our modern Hardwood flooring/dimension plant located in Lebanon, Kentucky. The plant was established in 1897. Please contact us when you need these fine wood products manufactured actured at our plant: 1.) 5/16 x1, 1-1/3, 1-1/2, 1-3/4, and 2” top-nail flooring 2.) 5/16”, 3/8” “Thick” T&G flooring (Mill Run Only) 3.) 5/16x3, 4, 5, 6, 7 and 8” plank flooring 4.) 1/2x1-1/2, 1/2x2, 1/2x2-1/4, 1/2x3 T&G Flooring unfinished and prefinished - upon request 5.) 3/4x1-1/2, 2-1/4, 3-1/4 unfinished and prefinished flooring 6.) Tread & Risers, s, Handrail, Skirting Boards, Landing Tread 7.) Mouldings, Base, Mockshoe, Splines 8.) Furniture and Cabinet Dimension Stock, Drawer Sides Our quality wood products are produced in species such as: Red Oak Ash White Oak Walnut Cherry Hard Maple Hickory Calll us when we can be of service! EBANON OAK FLOORIN G CO. LLC LEBANONL OAK FLOORING CO. LLC 215 Taylor Avenue, P.O. Box 669 Lebanon, KY 40033-0669 Phone/FAX: (270) 692-2128 E-mail: lebanonoakflooring@windstream.net looring@windstream.ne Website: lebanonoak.com SALES: Richard T. Goodin Robert L. Goodin LUMBER SALES: Richard T. Goodin 1 NOVEMBER 2013 ■ NATIONAL HARDWOOD MAGAZINE 9