By Terry Miller
President
The Softwood market in the Inland West region is “on fire,” according to a lumber supplier in Idaho. “The species really doesn’t matter,” he said. “We just have a lot of people looking for wood and they think they got cut short. People want everything they can get from us right now. There’s just not enough material out there.”
White Fir and Douglas Fir in all grades and sizes are most popular among his customers, who range from end users to wholesalers and distribution yards. “We make random lengths as well as studs and they’re both super, super hot right now in all species,” the contact reported. “So many people are at home now, not traveling and not booking big vacations. I think a lot of people are doing home improvements. Everything from plywood to glue to nails is just busy, busy. And not to mention our housing market in Boise, the growth is just exponential. Multi-family apartment developments are going in everywhere. The place is just booming.”
Another lumber source in Idaho corroborated that report, saying the market was “out of control.” Asked which species are selling the best, he answered: “This has nothing to do with price or species. It has everything to do with availability. The other stuff is secondary. At this point, it’s insane. To be honest with you, it’s really not that much fun. As soon as product gets on a list, it goes away. People want to throw their name on any order or any wood that might become available. I don’t think I’ve ever seen it like this.”
His business sells Douglas Fir, Hem Fir and White Fir, mainly to pro lumberyards, distribution yards and jobbers. The lumber supplier said a lack of trucks has become a bit of an issue, and that railroad delivery was difficult coming out of Canada. “Domestic isn’t as bad, but it still has an effect,” he commented.
Another lumber contact in Arizona also cited transportation problems on rail cars carrying Spruce and Doug Fir out of Canada. “There is a definite rail shortage now. The mills that usually get 10 or 15 cars a day are getting one or two a week right now,” he said. “That’s been going on for three to four weeks.”
The source described the Softwood market as “on fire,” marked by “crazy” prices, lack of inventory and strong demand. “We’re at that time in the market where it is ‘What do you have on the ground?’ ” he said, explaining that customers who usually expect a specific species are taking whatever they can get out of the Spruce, White Fir and Douglas Fir he carries. No. 2 is the preferred grade if it is available, the lumber supplier said. “They’ll start with what their preference is, but they’ll end up with whatever you have on the ground.”
Customers are retail lumberyards and multi-family builders. “What I’ve heard from the multi-family people is they are sensing that after the beginning of the next year, their business is going to slow down in this market,” he reported.
Right now, though, a lumber contact in Montana described the Softwood market as “chaos.” He explained: “Prices keep going higher and higher and higher because of lack of inventory, although people are still paying these high numbers that we’ve never seen before. We’re at record numbers, but they keep buying. And it’s getting more difficult to access available product. We don’t have contracts on the outside, and it’s getting to be a struggle, quite frankly.”
SPF, Doug Fir-Larch, Ponderosa Pine, and Engelmann Spruce are selling well in all grades and random lengths. Customers are retail lumberyards, “who sound just as frustrated as I do,” the lumber source said. He added: “I just keep thinking that the market might finally hit a spot where it reaches its peak, but it hasn’t seemed to.”
In Wyoming, a sawmill contact said the market was very active and that all Softwood species were in strong demand. He sells Ponderosa Pine and ESLP studs, primarily to retail lumberyards, pro dealers and distribution yards. “Everybody is absolutely swamped right now,” he remarked.
The lumber supplier noted that the stay-at-home orders in March because of COVID-19 helped kick off the retail demand, “but it’s trickled down throughout to every market we’re involved in.”
