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CANADIAN TRENDS News
CANADIAN TRENDS News from suppliers about prices, trends, sales and inventories ONTARIO QUEBEC As sales and shipments are still being affected by the U.S. and China, sales to China are still low for the Hardwood industry sector especially for Ash, Cherry, Red Oak and Walnut. Other species are also impacted. Some comment that business is better for those who manufacture industrial products as demand for railroad ties, pallet lumber, pallet cants is solid. Also, the U.S. housing sector has not been as high as last year’s figures. On the Canadian side, the housing sector has improved. Ash demand has slowed down somewhat, with local markets absorbing some of the kiln-dried production. Basswood demand has been bolstered due to the home fashion trend for painted finishes. This was seen as a timely shift as the traditional Basswood markets were dwindling, noted a contact. Production of this species slowed due to the seasonal trends and were aligned with demand. Some commented that Birch was still in demand, but not at levels that are normally seen for this time of year. Solid Hardwoods appear to have lost market share to manmade moulding and millwork products, cabinets, furniture and flooring made of veneer and laminate materials. Hard Maple exports to the U.S. have declined as a result of the slowed U.S. housing market. Kiln-dried supplies had risen in the spring but were going down through the summer months. However, contacts report there is ample supply to meet the demand for this species. Soft Maple demand has improved and is even beating out Hard Maple sales. Prices are stable at this time for this species. Interest for this species is for kiln-dried stocks rather than the Common grades. Sales of Red Oak are slightly less than anticipated for the time of year. Exports to Asian countries are very slow. Kilndried inventories are reported as high compared to buyers’ needs. On the other hand, White Oak markets are reported as mixed, and there are price variances. Interest is for the lower grades of this species. As the American Hardwood market to China is badly impacted by the tariffs and the ongoing trade war situation between these two countries, the U.S. is looking to expand its markets in Europe, but this Most markets were slow as the industry moved through the summer months. Some contacts noted that markets were flat for certain species, while for others such as Soft Maple, Hard Maple, and Poplar, these were easier to move. Supply of Cherry was exceeding demand due to the downturn in export markets, and a slowdown on domestic fronts as well. As a result, prices were being pressured down. The regionally important species, Hard Maple, continues to fight for its spot due to competition from other alternative species and materials for products. Contacts note that business is “not bad,” but it is not at the pace it was at earlier in the year. Supply of Soft Maple has slightly outpaced the demand for this species, however, markets are doing well when compared to other species. Sales are better for the upper grades than for the Common grades. Flooring manufacturers have ample supplies of Oak. Production is in accordance to demand for finished goods, with adequate inventories, but profit margins are hard to come by, noted some contacts. The annual pace of housing starts rose this summer to a seasonally adjusted annual rate of 245,657 units compared with 196,809 units in late spring, said Canada Mortgage and Housing Corporation in a recent report. The result topped the 210,000 units that economists had expected. The senior economist at BMO Capital Markets said the result was yet another factor helping to drive a strong rebound in second-quarter growth. Residential construction activity remains rock solid, as still-strong demographic flows are supporting unit demand, he added. The Canadian economy had a weak spot at the end of 2018 that extended through earlier this year, however strength has been building in recent months, as the Bank of Canada expected. The increase in the pace of home starts came as the rate of urban starts increased by 26 percent this summer to 234,238 units. The annualized pace of multiple-unit projects such as condominiums, apartments and townhouses increased by 31 percent to 185,804 units last month, while Please turn to page 72 Please turn to page 72 10 SEPTEMBER 2019 n NATIONAL HARDWOOD MAGAZINE
