Softwood Forest Products Buyer - January/February 2019

Connecting North

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WASHINGTON SCENE Continued from page 25 grams that help America’s farmers, ranchers and forest stewards manage market risks, recover from disasters and conserve and protect natural resources through FSA’s network of over 2,100 state and county offices. Prior to his appointment, Beam was the president, owner/operator of Beam Farms Inc., a fourth-generation row crop, specialty crop and hay operation in Elverson, PA. In addition to his farming operation, Beam owns and manages a sawdust trucking business. Learn more at www.fsa.usda.gov. n Inland Trends - Continued from page 36 you’re seeing several curtailments a week at dimensional mills and stud mills to minimize some of those losses.” The source’s customers reported slow business in early fall prior to activity picking up again before Thanksgiving. “It feels like the market is holding steady now,” source noted. Another Softwood lumber representative said the market is “relatively strong,” though weaker than six months earlier. “Housing starts have slowed a bit and interest rates have risen,” he explained. “The price of lumber got so high, but it’s back down now.” His company’s top seller is White Fir, all grades, 2x4, 4x4, 4x6, boards and dimension. He also sells ESLP, SPF, Inland Red Cedar, Ponderosa Pine and sheet goods. His customers are retail lumber yards as well as industrial accounts. “The most glaring issue is low-grade lumber for industrial accounts,” the contact said. “It’s still overpriced compared to the upper grades.” Federal regulations regarding the trucking industry, such as mandated electronic logging devices, have caused some difficulties, he added. “It’s been a real struggle for a lot of trucking companies, so there’s a shortage of drivers and there’s a shortage of trucks,” he explained. An Idaho lumber supplier said, “We’ve had a record-breaking market pullback in pricing in magnitude and in velocity over the last three months, so every producer is pretty much upside down on today’s current sell price versus what the cost is to produce that lumber. It got overheated and then pulled back rapidly. That causes pain throughout the supply chain when people are trying to manage inventories.” Hemlock Fir and Douglas Fir in all grades are his company’s top sellers. It also carries Cedar, Ponderosa Pine, White Pine, Lodgepole Pine, and Larch. His customers include “big box” stores and national distributors. n Northeast Trends - Continued from page 36 Eastern White Pine in Standard, Premium and Select grades, mostly 4/4 thickness. “They’ve seen increased demand for the Commons, for the Premium and Standard boards.” The Connecticut company also sells Ponderosa Pine, Sugar Pine and primed New Zealand- grown Radiata Pine, the pricing of which has been affected negatively by tariffs. n Southeast Trends - Continued from page 37 had hurt some business sectors more than others, “A rising tide lifts all boats. I think everybody’s going to benefit from this over time.” n Quebec/Ontario Business Trends - Continued from page 37 have been over-estimated, with the growth in the condo market. He noted, “You see so many condos going up now. There is a huge amount of lumber going in to regular stick built, but little in condos. And in the DIY market, I am concerned about the forecasts of near-term economy, which are somewhat more negative and people will be hesitant to spend money, so this may have an impact on demand as well.” A Quebec producer commented, “There may be more production coming on the market than people anticipated. I see no room for growth in Quebec and no more expansion in Ontario. Canadian production won’t increase and could probably drop. The U.S. southeast supply might have an impact on our markets. We should be cautious in the short term, but we may still see prices increase even if there is not much of an increase in sales.” Continued on page 56 Unique And Environmentally Friendly Yellow Cedar Durability that looks amazing inDoors anD outDoors. Weathering gradually changes the patina of Yellow Cedar from its usual honey color to a beautiful silvery tone. Extremely dense • Resists Decay • Straight grained • Excellent strength and stability • Ideal for use in marine and coastal environments C&BTR MG & C&BTR VG n STRUCTURAL LAMINATIONS n SELECT TIGHT KNOT & #1&BTR STRUCTURAL Oregon Industrial Lumber Products Your source for high quality Yellow Cedar and Douglas Fir Family owned since 1983 oregonindustriallumber.com Softwood Forest Products Buyer n January/February 2019 Page 55 OREGON INDUSTRIAL NOV 2018.indd 1 12/4/18 2:54 PM