In the Inland West, the markets for several companies contacted were strong, but in one market, customers were on-hold, waiting to see how prices would go.
“It’s been a little quiet the last couple of weeks,” stated a lumber provider in Arizona. “Prices kind of petered out from their upswing. Everyone is waiting to see what the prices will do. That’s where we’re at, at the moment.
“At this exact point in time, I’d say the market is worse than it was a few months ago, but I don’t anticipate that lasting,” he remarked. “The market will pick back up. We’re getting ready to head into spring. That’s not that big of a factor. In Arizona, you can build things all year round. But it does affect us. January is typically one of our slowest months; everybody builds to get everything put in the ground for year-end, then building activity slows down in January. So, it’s quiet now. But I anticipate that when the market gets a direction again and goes back into February and March, the market will come back to life.”
Everything he sells is No. 2 including Green Doug Fir and Inland White Fir in dimension, as well as studs in White Fir and kiln-dried Doug Fir.
He sells lumber to wholesale distribution yards and to multifamily companies, which have “a ton of jobs for this year in our market. Apartment jobs and condos are all very strong. Single family is a smidgen off, but not enough to be worried about. Wholesale distribution companies have all been very busy. They’re still doing a little buying but waiting to see the direction of the market. They all have a lot of business out there that they need to supply; it’s just a matter of how fast they need to buy to cover it.
“Transportation and COVID – with what it does to the workforce – have been our main challenges,” he continued. “Transportation costs are up, and lead times are way out. I have trucks that normally would take two or three days to get covered that are taking four weeks. And we’re paying four times as much for them as we used to. That’s killing us. The railroads are killing us, too. They’ve been really horrible about getting railcars into the mills in Canada, so that affects our ability to get the product we’ve bought. COVID has pretty much messed up everybody, because you can’t keep employees working. At one point not too long ago, we had 50 percent of our staff out. And pretty much everybody has that same problem.”
Elsewhere in the Inland West, the markets are busy and strong. In Wyoming, a lumberman said, “Right now, everything’s pretty active. Dimension seems to be falling off, low grade boards are busy, shop products are all busy and high-grade boards have just as much demand as we’ve seen in the last three to four months. The only thing I’d say is tapering off is studs.”
The market is better than it was six months earlier, he stated. “Prices are better, activity is better, program draws are better; activity in general is better. The only thing that’s down now is the ability to ship material.”
He sells Pondersa Pine to end users, distribution yards, retail, reman and industrial customers. “Our business is a direct reflection of our customers,” he noted. “They’re all busy right now.”
However, “Transportation is our biggest challenge right now,” he said. “It’s terrible. Finding trucks is almost impossible. It’s not getting any better.”
A lumber source in Idaho said his market is “very good. I sell Pine and Cedar. As much as there may be a pause in dimension, Pine and Cedar are still very strong. Demand is good. There is tighter supply. It’s a good market.” In fact, he observed, it is better than several months ago.
His Ponderosa Pine comes in No. 2, No. 3 and No. 4. Cedar boards include 1×4 through 1×12. “Everything’s selling pretty well,” he commented. “Everything is moving pretty easily at this point. But 1×8 No. 2 Common in Ponderosa Pine is very strong.”
His sales are primarily to distribution yards, he said. He termed their business as “good.”
“Transportation is a nightmare,” he stated. “We are spending more time on transportation than ever. Right now, I get almost as excited about booking a truck as I do about getting an order. Every month, it’s worse than the month before with regards to trucking. That’s putting additional pressure on rail. We are railing to facilities we wouldn’t have normally railed to, like Salt Lake City, because trucks are so tight and so expensive. Also, the rail system is tight. A lot of it is already at capacity. I don’t see any change anytime soon. If the economy slows down later in the year, maybe it will get better.”
At another lumber company in Idaho, a spokesman said, “The market has been good, very strong. For this time of year, it’s uncanny. I think we are going to be in for a strong year of lumber trading.”
Compared to a few months ago, he stated, the market is “about the same, still good.” He sells Southern Yellow Pine to distribution yards, end users and industrial customers. “Their sales are still good,” he observed.
Asked about challenges, he replied, “Trucking and transportation are big problems. Other than that, issues with COVID are difficult.”
In Montana, a lumber provider stated, “We’re very busy. It’s been very good. The market is very strong.” In fact, it’s better than it was six months ago, he said.
He sells upper grade Inland Hem Fir – his best seller “by a landslide,” he remarked. He also provides some No. 2 and Better SPF and No. 2 and Better Hem Fir. He sells to retail lumber yards. “They’re doing very well,” he noted. “It’s very busy. It’s very busy on the west side of Montana. The east side of Montana and western North Dakota are a little quiet. “Transportation has slowed things down big-time,” he stated. “Transportation is an issue.”
