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Inland West lumber suppliers report mixed market conditions.
A source in Washington said demand is increasing after the spring breakup. “The weather has changed and everybody is starting to get back into the woods,” he said. “Demand is certainly up from the first quarter.”
Handling Ponderosa Pine, White Fir, and Fir/Larch he noted Pine as the best-moving species. “Historically we’ve always been heavy to White Fir, but the Pines are moving right now.”
As for his customers’ markets, he said they are busy and order files are coming in. “Our business is based on their orders and they have order files out for at least the next three months, which we’ll take compared to last year.”
The transportation side hasn’t been a negative factor for the lumber supplier. “We’re fortunate that we have a rail system that comes through here,” he explained. “Everybody is short on trucks, but in our specific piece of the world, we have just enough to get the wood out.”
In Oregon, a Softwood lumber sales manager had a different scenario. “Everything in the on-grade and the uppers are doing better but not enough to count,” she explained.
Primarily a 2×4 and 2×6 mill, she said No. 2 and Better has been hard to market. “We’ve been seeing very specific tallies, mixed loads and specific needs. The low grade isn’t the same. I’ve been able to sell No. 3 and Economy 10 to 15 over where the print is off of Randoms.”
Handling Ponderosa Pine, Spruce and Lodgepole Pine along with Doug/Fir/Larch and Hemlock Fir she said Pine is moving the best. “That’s what we have been on for the last two or three weeks, which is a pretty good size run for us.”
Marketing to distribution centers she said her customers are speaking of a slower economy. “Nobody knows what to plan for,” she commented. “One of our customers in Colorado said she shipped to a job site that got turned around because of flooding on the job. I haven’t really heard anything positive out of anybody just yet.” Compared to six months earlier the contact said business is off by about 15 or 20 percent. “The uppers are not doing anything, all of the framing grades are tough to move. Economy grade moves well but unless you’ve got the exact tally they want for the uppers, it’s harder to move right now.”
If there is one factor that sources agree on it’s that transportation hasn’t been an issue. “We’re close to the Boise market, which is where a lot of our fiber goes,” a supplier in Idaho noted. “Trucking along with rail has been good for us. It may be just our location, but we haven’t struggled moving anything,” he explained.
As for any negative factors, the source said he attributes his current challenges to the economy. “It is an up-and-down market for everyone right now. Nobody is really sure where this is all going to take us.”
Looking ahead, the Softwood lumber buyer said he expects to limp along. “It’s really sad because by this time of the year, we should be bumping and going by now. But I don’t really see things changing much in my area in the near term.”
