Lumber buyers in the Lake States area report products are moving but conditions are tough. In Wisconsin, a contact said, “Red and White Oak continue to move well but everything else is hit or miss.”
When asked if things are better or worse than the same time earlier in the year he said it’s a little worse. “The lower grades are moving. Our customers are getting orders and they are moving but they are certainly not thriving.”
Transportation isn’t an issue for the buyer who said interest rates aren’t hurting his operation but they are hurting a lot of people in the lumber industry overall.
A Michigan source said Hardwood lumber movement is up and down but overall conditions are average. “We’ll see a slight uptick one week and then it will go back down,” he explained. “It’s not necessarily steady, but the combination evens out.”
He indicated White Oak was the best moving species followed by Walnut in 4/4 through 8/4, No. 2 and Better.
His customers’ businesses are also mixed. “It’s just a mixed bag within our industry I think,” he explained. “It depends on who you talk to. Some of our guys are busy and others are slow.” He said transportation is good. “The weather has been better so that area is seeing a lot of improvement. In the winter months, it had been harder to get the logs out of the woods, but that’s improving now. Our biggest issues are interest rates and housing starts.”
Activity in Minnesota is good to average, according to one representative. He said, “The lumber seems like it’s still moving out the door. Prices just aren’t very good right now. Exports have slowed up to Vietnam and China. They’ve gone a little bit quiet.”
When asked to compare current conditions to the first quarter he offered, “I’d say it is better than the end of the year. Years ago that was typical; we’d come off during the holiday season, and it would be more up and down. As for his customers’ businesses, he said it’s also average. “Our customers have questions on what’s coming up. They’re not trying to keep any inventory – they question about selling in the future. Without order files, they just aren’t buying. They’re not trying to keep big inventories. Of course, they’ll keep certain items on the shelf, but not a surplus.”
He also said Walnut and White Oak are moving along with some of the higher priced inventory. “Northern products move pretty much everything with Red and White Oak and Soft and Hard Maple in the lead. We’re doing a lot of mixed loads with Cherry, Ash, and Alder in No. 2A, 3A, rustic grades, No.1 Common, Select and Better, and Face and Better in 4/4-8/4.”
He continued, “The distribution yards are doing pretty well. Some sawmills are a little off from where they were but they’re still producing at a decent level.” Concurrent with other sources in the region the one bright spot is transportation. “Transportation is better than what it was,” he explained. “Costs are still high and we haven’t seen anything go down on that. Exports seem to be stagnant with issues at the container level. Most of our customers are not in panic mode. The general attitude is we have to get the product. If you’re late a week or two you’re late based on transportation, but we still have to have it.”
