In the Lake States region Hardwood activity is low compared to the beginning of the year.
An Indiana wholesaler said, “We came out in the beginning of the year a little stronger than where we are now. Some of that could be people holding off purchasing inventory from the holidays but now it has leveled off.”
Species purchased by the source include North American Ash, Beech, Cherry, Hackberry, Hickory, Hard and Soft Maple, Red and White Oak, Poplar, Sassafras and Walnut in thicknesses up through 16/4. The Hardwood supplier said White Oak is his best moving item and lower grade Hickory is the slowest mover. When asked about his customers’ markets he said, “The guys that I talk to have some orders but they are not wanting to bring in a lot of inventory. Many of them are taking the just-in-time inventory approach to where they are purchasing it the week they know they are going to cut it up. Distributors are probably being utilized a bit more to where they are not ordering for stock but just for the job at hand. Instead of ordering a truckload of Hard Maple they are just getting what they need and going from there.”
In Ohio a contact said Hardwood activity in his area has been slow. “It’s down right now because the supply and demand isn’t right,” he explained. “Everybody is waiting for their inventory to go down a little bit.”
Handling all domestic Hardwoods in mostly 4/4 thickness, the supplier said Oaks are moving the best and Poplar and Ash are the slower items. “We’re having some availability issues with Ash; it’s getting harder to find,” he noted.
As for transportation the source said it hasn’t been an issue for his operation because they have their own trucks. “What we see as the primary impact on the market currently is this election year,” he offered. “People don’t know which way it’s going to go and many are holding off to see what November brings.”
Looking at the months ahead he commented, “I look for things to turn around by the end of this year.”
In Michigan a Hardwood supplier said activity has been tight. “From a supply standpoint, conditions are still pretty tight,” he said. “I think the log decks are still pretty low and prices continue to creep up on most species. From the selling side prices are a little better than the first of the year. The cabinet industry seems to be pretty good, which is the majority of our customer base.”
Carrying most Northeastern Hardwood species and specializing in color sorted Northern Red Oak, Nos. 1 and 2 White Hard Maple, Walnut and White Oak, the contact said White Oak is the best moving item. “White Oak and Walnut are extremely hot right now,” he said. “The White Maples No. 1 and Better are moving great right now. The issue that we are having is selling the lower paint grades. Hickory and Poplar are moving and most everything is decent except for the lower grades.”
The contact said most of his customers’ markets are doing well. “The one area that might be slowing down is in the Mountain states from what I understand across the country. For the generalities the bottom is not falling out of the market.”
