In the Northeast region, the market in Vermont is running “hot and cold,” a lumber source said, explaining, “Some products are moving really well, mainly finished products ready to go into retail markets. Others are at a dead standstill.”
His business sells Eastern White Pine in 1-inch to 4-inch in all grades–1-inch in Premium and Standard grades have been selling the best. Customers are wholesale distributors, who sell to manufacturers of such products as windows and cabinets.
“A lot of them have seen some slowdowns because of the virus,” the source remarked. “Some of our customers have been taking wood as usual. Others have been on hold since mid-March. Some of them are starting to take wood again and we’re still waiting to hear from others.” Transportation has been good and available, he added.
In New Hampshire, a lumber representative said the pandemic had caused some concern that there wouldn’t be a typical spring boom in consumer buying, but that the home-improvement purchasing did start, albeit later than usual, so his retail lumberyard customers were “very, very busy.”
Eastern White Pine (Premium) 1×6 and 1×8 and Eastern Spruce (No. 2 and Better) 2×4 and 2×6 are selling well in all lengths to customers, who also include manufacturers of crates and pallets.
The lumber source noted that many customers took a major hit on the value of their Softwood lumber inventories when the coronavirus hit. “There were some big losses taken in March and early April so they were all gun-shy to get back in. And now they’re very busy and getting back in again at higher numbers. They’re feeling underbought,” he reported.
“In our micro-region, the market is fairly strong, but it’s still quite spotty,” a sawmill contact in Maine reported. “As you get further away from our location, certain areas like Quebec are still very, very reduced or shut down. New York is still struggling and Pennsylvania sawmills are still running at a reduced rate, but other states are as busy as they’ve ever been.”
Eastern White Pine in upper grades in 4/4 thickness is in strong demand, said the contact, who sells to retail yards in Maine and wholesale distributors outside of the state. “The only thing we’re having trouble selling is the low-grade material,” he said, adding most of the low-grade Eastern White Pine is bought by Pakistan, which has been shut down due to the coronavirus and Ramadan.
The recent closure of a large paper mill in Jay, ME due to an equipment explosion has shut off a major market for sawmill chips and low-grade Softwood pulp, he remarked. “That has severely hampered some of the loggers in the area by reducing an important market for them. It’s causing some effect on the log availability,” the contact said.
He also cited a sawmill in northern New York that has slowed production due to loss of market, so it has stopped buying chips from some of his “friendly competitors.”
