Lumber movement was reported as active recently for sources in the Lake States region.
For a Michigan green sawmill operation, prices have been strong. “The market is excellent and we are still doing well,” said the sales and shipping manager of the operation which sells to concentration yards as well as end users, including manufacturers of flooring and recreational vehicles.
The company primarily markets Red Oak, Hard and Soft Maple, Aspen, Basswood, plus smaller amounts of Beech, Birch and Cherry industrial Hardwood. “All are selling well,” he said. “Maples are hotter than heck and are still going crazy. Every week, they’re up more and more. One starts to get ahead of the other – the other one catches up. It’s crazy.”
The firm primarily sells 4/4 but also 5/4 and 6/4. “The grade lumber market is still steady and good with industrial doing well, too,” he commented. Compared to six months ago, business was similar but a little better. He continued, “The Maple keeps going up, but now, the off-color stuff such as Birch, Beech, Ash, even Aspen and Basswood, are up.”
Business has been favorable for another Michigan supplier. “Markets are very strong from stump all the way to finish,” reported the company’s sales manager. “Demand has been strong all year. Supply has been an issue throughout much of the year. In the very northern part of Michigan, the Upper Peninsula, logging conditions are strong. Raw material flow is steady as you get below the bridge into lower and downstate Michigan, which are experiencing some real raw material supply issues, both in log form and green log form.” That, he said, was pushing pricing even more. “For the most part in our northern end of Michigan, we are sitting in a good spot,” he added.
The firm markets Hard and Soft Maple, Red Oak, Birch and Basswood in grades 3A and Better and produces industrial grades. Thicknesses range from 4/4 to 8/4. Soft Maple, Birch and Basswood were selling well and were “extremely hot items,” he reported. “Hard Maple continues to be the key for us. It continues to hold steady as far as pricing goes.”
For Soft Maple, Birch, Basswood and Ash, “pricing continues to push higher and higher,” he noted. “Unfortunately, there is not enough supply to meet demand.”
Compared to six months ago, “The chaos has dwindled some in the marketplace,” he commented. Some items remain well undersupplied and in various high demand, including Soft Maple, Birch and Basswood. Hard Maple rectified the supply portion and some of that was attributed to the pace of purchasing, which typically slows by the end of the year due to inventory levels. However, he fully expects purchasing to return to normal early in 2022.
“2021 slowed down vs. the pace it has been at, but the market is still at a record pace as far as volume,” he said. He expected January 2022 to be another strong month. The biggest issue is mainly labor, which was causing ripples through lumber operations and their customers’ facilities. Labor was tough and the truck driver shortage caused issues. “Any domestic and export container shipments, the drayage portion of the business, has really slowed,” he stated. “Domestic flatbeds remain steady but prices are increasing every week.”
Lumber movement was hefty in Wisconsin, where the yard manager of a concentration yard, which buys from throughout the Midwest reported favorable business. “The markets are really good,” he said. “They are almost the highest I’ve seen in my career of 30 years in the lumber business. The pricings, the value of the lumber is really high now.”
Employee shortages daunt the lumber business. “People can’t supply as fast as demand is,” he observed. His operation is down one-third of his normal staffing.
The firm primarily handles 4/4 and 5/4, but also 8/4-9/4 for some species. He buys and sells Maples, Oaks, Walnuts, Ash, Elms and Cherries from grade 3B to FAS prime for export. Most species were selling well with the exception of Red Elm. “White Oak is really hot as is Walnut and Hard and Soft Maple,” he stated.
In Ohio, everyone in the industry was dealing with long lead times for lumber. Small furniture manufacturers were dealing with two to six month lead times.
In May and June, the company dealt with six to eight week lead times. Today, it’s returned to four to six weeks weeks for some products, such as panels. “Things have slowed a little, but they needed to slow a bit just to be manageable,” commented the chief operations officer of a lumber supplier. “We figured out a few efficiencies that helped us cut the lead times. Sales are not declining in any way, but we’re seeing our sales where they were, but seeing shorter lead times. Lumber prices are pretty much the same as they had been.”
The region’s outlook appears positive. “We are still busy and everyone else seems to be busy,” he said. “With log decks being low already going into winter, production won’t surpass demand. We should stay busy the next six months for sure. The outlook for the next six months looks strong.”
The firm’s largest customer recently informed them they feel 2022 will be strong for them. “They have enough of a backlog for their product,” he explained. “With only that and their normal business, they feel they will stay fairly strong for ‘22. It seems everything’s still staying fairly strong.”
The biggest sellers for the firm are Poplar and Red Oak. It also markets White Oak, Soft and Hard Maple with small amounts of Walnut, Hickory and Ash to its moulding, millwork and furniture manufacturers, distribution yards and export customers. Lumber thicknesses are mostly 4/4 and 5/4.
