The reports on the hardwood lumber markets in the Southeast portray an element of negativity.
A lumber spokesperson in Mississippi said that the market wasn’t doing well at the time of this writing and that it is worse than six months ago.
They offer, “pretty much all species indigenous to the Southeastern and Eastern United States,” said the representative. Typically, they sell 4/4 and 4/5 kiln-dried material. White Oak, he said, “Carries a bigger price tag than anything else but I don’t know if anybody is selling it; we sure aren’t.”
They sell to flooring and moulding manufacturers as well as pallet and crate companies.
He believes, “The rest of the year is going to be tough. There’s going to be a major adjustment. I don’t mean to sound like a downer, I’m just telling you the truth. It’s pretty depressing where we are.”
A lumber source in Alabama had similar sentiments, giving the market a negative review, as there’s “no demand for lumber right now.”
They handle Red and White Oak, Poplar and Ash in 4/4, 4/5 and FAS in addition to No. 1 and No. 2 Common. He mentioned that White Oak is “the only specie that’s selling good” and “is selling the best.”
The company’s clients consist of international and domestic buyers, moulding and flooring companies. As for any commentary his customers had regarding their own markets, he said, “I don’t think anybody’s markets are doing great.”
A lumber spokesperson located in Georgia said, “It’s kind of funny,” when questioned about his market outlook, explaining how they “don’t have enough logs to make any runs,” and that the market is “about the same as it was six months ago.”
The company offers Poplar and Red and White Oak in “first and second” and No.1 and No. 2 Common. White Oak has the most successful sales at the time of this writing, described as being “through the roof in all grades.” The sales for their “first and second Red Oak are pretty good. Our No. 2 Common Red Oak market is very good and the Common, Red Oak market is okay. I’m selling everything we have but I’d like a stronger price if I could get it. I sell FAS Red Oak as soon as I get enough to make an order.” They also sell some Southern Yellow Pine.
In regard to the customer base, he said they “spread the gamut pretty good,” selling to hardwood distribution and concentration yards, as well as exporters “from the States. We don’t sell to export markets directly. We sell to bigger millwork houses too and some bigger cabinet manufacturers.” When asked whether his clients had any commentary, he mentioned that interest rates have “been high for the past three years, which means that housing has started to slow down. Everything we make ends up in somebody’s house and for us to be successful, housing needs to pick up.” Despite interest rates causing a downturn, he said, “Industrials are pretty good right now, so are the pallet cants and specialty timbers. Those are bright spots in the industry.”
As for more negative effects upon the company’s business, he went into detail on how transportation has been troubling, “The energy situation in this country is not good and the price of fuel is too high.”
