By Terry Miller
President
Lumber providers in the Inland West who were asked the state of their lumber markets had positive things to say.
For example, a lumberman in Idaho said his market is good. “Lumber is moving,” he stated. “Dimension lumber is selling very well. Pine boards are moving – not quite as well as dimension lumber, but I can’t complain.”
Asked to compare his current market with that of several months ago, he said, “It’s hard to be as good as it was six months ago – when sales were at record highs. The market was pretty darn good. That was about as good as it gets. But now it’s better than it was recently. Prices went down and rebounded.”
He, himself, handles Ponderosa Pine, Idaho White Pine and Cedar. His company also handles Douglas Fir, Hem Fir and White Fir. The best seller, he noted, is Douglas Fir. He handles 2×4 through 2×12 in Hem Fir and Doug Fir. In White Pine and Ponderosa Pine, he carries 1×4 through 1×12. In Cedar, thicknesses include 2×4 through 2×12 and 1×4 through 1×12.
He sells lumber mostly to distribution yards, home centers and stocking distributors. “Their business is good,” he stated. “Everybody seems to be doing well. I think consumption in the field to the job site has remained pretty darn stable throughout the price drop until now. What really drove up prices when they got really high was speculation and a scramble. Everybody was panicking. There was panic buying and panic selling. In the field, however, individual yards seemed to move wood all along. Long-term sustainability from the distributor to the end user seems to have been good all along the way. The prices went up and then down between the mills and the distributors.”
Transportation, he observed, is definitely an issue. “Transportation is as bad as it’s ever been,” he remarked. “It’s been very tight the last couple of years and it’s worse than ever. We spend a lot of time chasing trucks around; they are more expensive and harder to get. We’re still getting it done but it’s a battle every day.”
In Wyoming, a lumber provider said his market is “improving every day. Activity’s much better than we were seeing after the downturn.” Then he described, one after another, the ways in which his market is getting better. “Over the last three weeks,” he said, “the number of calls we have been fielding has gone up substantially. The number of purchase orders we’re taking now is better. Phone conversations are better. Distributors are buying more. Retail business is picking up. Industrials are picking up as well. The pallet and crate companies are buying more material. I would say we’re probably not back to where we were pre-July 4, but we’re in a lot better shape than we were four weeks ago.” Nevertheless, he said his market is worse than it was several months earlier.
His sales include Ponderosa Pine, Lodgepole Pine and ESLP Studs. The best seller, he stated, is dimension products. “Our stud mill is probably outperforming boards at this time,” he noted. “Shop 5/4 and 6/4 activity has been steady.”
He sells his product to end users, reman and distribution. “Distribution is probably the biggest customer,” he observed. “Their purchases from us are a direct reflection of what they’re seeing on their end; their business is picking up.”
Asked if transportation is a problem, he replied, “With the market conditions we’re in – improving but not back to where we were – I would say transportation has little effect at this time. If we get back to where we were pre-July 4, when everything was moving well, transportation will certainly be very difficult.”
In Arizona, a lumber representative said his market is “actually very good right now. Everybody’s busy. Lots of business is going on. We’re struggling with the normal issues: trucking, rail and having enough inventory. Freight is taking two to four times as long to get covered and it’s costing two to four times as much money as it used to. Rail shipments are late. A lot of mills are very low on staff, so inventory is a little on the low side. When you think you have product bought to come in at the right time, you get the notification that it will be late. Everything’s late and more expensive. It’s a little bit of a struggle now. Transportation is our biggest problem.”
Compared to several months earlier, his market is “probably better because of the massive price correction. We actually have people who want to buy product again. The other issues have been there, but just the fact that people want to buy makes it, overall, better.”
His product includes 2×4 and 2×6 Spruce in 8’-20’, the same in White Fir and 2×4-2×12 in 8’-20’ in Green Doug Fir. Selling best, he said, is “probably the Doug Fir.”
He sells to distribution yards and other lumber yards like Home Depot, Lowe’s and regional chains. “They’re all busy,” he observed. “Everyone’s busy and just trying to cover their needs.”
