MIDWEST TRENDS-
MIDWEST TRENDS- Continued from page 29 - - ves A, d as ald us ed t is we plid ed. a LC , at- dus- ss, & p- ratt , usier esers and er od- ec- e moart inent legion n ith k Inc. to anto a trial omfor te ol m- ht- ti- ting eam ge 41 Two Coat exterior Prime Our two-coat process starts with an alkyd sealer to block tannin migration, followed by a high performance acrylic primer The result: RESERVE quality, inside and out. Superior Wood Made of quality, clear, finger-jointed Western Red Cedar or Redwood, these products are naturally designed for exterior use _ both species are ideal for enuring extreme weather. Surfacing + Sizes + Lengths RESERVE products come in a wide range of sizes, lengths and finished. Whether the project calls for S1S2E or S4S, we offer lengths ranging from 16’ to 20’. Pattern stock is also available. 1x4 _ 1x12 5/4x4 _ 5/4x12 2x4 _ 2x12 The Finest Stock, The Best Coating Our Siskiyou Forest Products RESERVE line is specially manufactured and treated to create the highest quality product available. Using state-of-the-art application and curing equipment, our premium Western Red Cedar and Redwood stock is made to last for many generations. We are proud to offer a beautiful, durable product that is ready for installation and final painting the moment it reaches the craftsmen. www.siskiyouforestproducts.com 800.427.8253 • 6175 Hwy 273 • Anderson, CA 96007 better than it had been six months earlier. This company sells No. 2 Common Spruce, No. 2 Common Green Douglas Fir and No. 1 Common Yellow Pine. Sales are to pro dealer yards, independent lumber yards, chain store lumber yards, such as Home Depot, and Lowes. In Texas, a lumber provider stated that the market “can change on a dime. A few months ago, I would have given you a different answer from today. It’s been a down year, though. It being one of the wettest years in Texas has contributed greatly to the slower demand and weakened log supply. Our strongest seller currently is 2x6 Yellow Pine. That’s the only species I deal in. Compared with the last eight years, I would say we’re seeing the lowest prices ever and in some cases they’re still trending downward. There have been several mills in this area that have come online in the last year and that’s contributing to the lack of sales and log supply because they’re taking away from our typical demand.” In South Dakota, a lumber source said the market was “steady, I guess. We’re not breaking any records, but we’re keeping trucks full.” He observed that the market was better than it had been six months earlier. His company sells mostly Cedar in architectural knotty, D and Better and bevel siding. Transportation was not a problem at that time. n WEST COAST TRENDS- Continued from page 29 in May never really materialized. Buyers are still very cautious and the weather around most of North America will not release its grip. Log prices in Cedar and other species have come down to help mitigate the lumber price declines we have seen since late last year. Manufacturers are now hoping for stronger demand through June and July to bring things more in to balance while buyers are still wondering if things have stabilized price wise.” Garofano continued, “With excess inventory around in some items, there are deals to be had for those willing to try a new supplier while others are choosing to stay the course with their regular suppliers ensuring consistency in their purchases. With all the obstacles and the value decline we have seen across the board the last six months a lot of timber stands are now off-side economically resulting in new logging curtailments being announced each week. These curtailments along with the expected fire season right around the corner should lead to bringing the supply demand balance back in line this fall.” Finally, Garofano said, “It appears prices have now stabilized and by late this year the industry will have had a muchneeded reset allowing us to go forward with much less volatility and uncertainty.” Leslie Southwick of C&D Lumber, Riddle, OR said, “Supply and demand has been pretty balanced in most products over the last couple of months. We kept a pretty consistent production schedule through the first two quarters of the year, which has allowed us to keep balanced inventories. Pricing continues to waffle with no firm footing. Usually by this time of year, we will see price increases with more demand, but it has been relatively flat.” Southwick continued, “Customers have been upbeat but not buying aggressively. Orders have been more on an as needed basis. Customers are approaching the market cautiously. There was more optimism in the first quarter expecting that demand and pricing to be better in the second quarter which didn’t materialize as of late May.” Southwick concluded, “There is still concerns for a strong fire season, but currently logs have been easier to purchase then a year ago. Logging activity is strong currently as landowners clean up downed logs from the late season snowstorms that struck in late February. Trucking and rail car availability has been pretty smooth this year with more consistent availability and steadier pricing.” Continued on page 53 Page 52 Softwood Forest Products Buyer n July/August 2019 Page 39
WEST COAST TRENDS- Continued from page 29 Archie Rafter of Andersen Pacific Forest Products, Maple Ridge, BC had the following to say about the balance of supply and demand, “WRC Clears have slowed with some price softening in certain items. While the demand and pricing for merch is still fairly stable, it has also been forecasted for the Northwest a hot dry summer so we are anticipating logging closures due to fire risk.” Rafter continued, “Buying varies depending on the product group; but generally, markets are quiet with back to back purchases. As a result some weeks are busy with others very slow. In my career of 32 years I don’t believe I’ve ever seen at this time of year the SPF pricing/market this weak causing mill shutdowns/closures. I believe the current geopolitical environment of trade wars, lumber duties and Brexit is causing lots of uncertainty/nervousness and has the real potential of becoming inflationary!” Rafter concluded that he thinks the “dry summer will have an effect on log supply into fourth quarter lumber.” n EASTERN FOREST PRODUCTS/ MILL SERVICES SOUTHEAST TRENDS- Continued from page 30 the “full gamut” of grades, focusing on lower grades. Thicknesses range from 1 inch to “pretty large timbers.” This company sells primarily to end users. A lumber exporter in Louisiana stated that the market for his company (offshore) was “steady.” “It’s better than it was in May of 2018,” he noted. “A lot of that is because prices in the U.S. have stayed very moderate this year. It is better than November and December, for sure. And we’ve actually seen a pickup. February was absolutely dreadful. But March, April and May have all been a positive trend.” The company handles Southern Yellow Pine, everything from Saps and prime to merch in No. 1 Common, No. 2 Common and No. 3 Common. Selling best are prime and No. 1 Common. In rough, full sawn, 1 inch is the best mover by far. Their customers include distributors and end users. “Demand in most foreign markets is off; they’re not going nearly as well as in the U.S.,” the lumber exporter noted. “In some areas, I’ve had customers tell me their business is off by as much as 40 percent. They haven’t seen the explosive growth we’ve seen domestically here. Particular countries are doing better right now than others. But you have countries like Turkey, where I was selling a dozen containers a month. Now I’m lucky if I sell one. It’s a real mixed bag. A lot of markets overseas are stagnant at best.” Meanwhile, in Virginia, a lumber supplier said the market for them was “great. I can’t complain.” Compared to six months earlier, he observed, “I would think it’s better, and the thing that gets me going is once all the rain stops, it’s going to pick up.” His company handles Eastern White Pine, Ponderosa Pine, Spruce, imported pattern stock from Germany, clears from New Zealand, Inland Red Cedar, Douglas Fir and Eastern White Pine Timbers, from low grade to clears. Customers include distributors and end users, including millwork shops. “The information I get from my customers is: business is good,” he stated. “The fear that I have is that supplies are low on today’s market versus what they were a few years ago, and when the weather improves, there will be very abundant business.” n Largest Eastern White Pine finger joint plant in the Northeast 100% clear Eastern White Pine finger jointed primed lumber Available 1x2 to 1x12 8–16’ foot lengths Approximately 12 million board feet of clear DEFECT FREE boards Offering Primed Products in both oil and latex coatings A team of 97 dedicated employees making the products you depend on Providing all NELMA patterns produced by Weinig moulders Also capable of producing Eastern White Pine Edge Glued Panels 18", 24" and 28" wide QUEBEC/ONTARIO TRENDS - Continued from page 30 is certainly higher than the price in the most recent week available. The market has definitely seen a very marked decrease from the 52-week average to the most recent listed price. Prices for 2x4 utility lumber are also down. On the Pine side, markets are starting to improve a little bit. One Ontario producer told me, “We didn’t have the spring run we normally have, which usually starts in March and April, so that things Continued on page 54 Marketing through wholesalers and wholesale Distributors ! call (800) 578-2119 www.millservicesinc.com Softwood Forest Products Buyer n July/August 2019 Page 53 Eastern-Mill SVCS-Nawla 2018.indd 1 9/6/18 11:28 AM
