Demand for Softwood lumber is generally robust and inventories are very low in the Midwest, according to lumber suppliers.
“The biggest issue is not having enough material, supply issues,” a distribution contact in Oklahoma reported, citing the closure of sawmills because of the coronavirus pandemic. “Demand is much better than supply right now, both at distributors and at retailers.
“Right now, people are changing species from what they typically use,” he added. “So it’s really a situation of, ‘If you don’t have Pine, I’ll take Fir. If you don’t have Fir, I’ll take Spruce.’ We sell Southern Pine, we sell Spruce and we sell Doug Fir, and they’re all selling well if you have it. It’s an unprecedented situation.”
Mostly No. 2 grade is favored, though a little bit of No. 1 is sought in SYP. “Treated lumber and 2×6 has been virtually non-existent,” reported the source, who sells mainly to retail lumberyards. “They’re frustrated by not being able to get material and having to tell their customers that they don’t have it right now. You have orders in hand, but you can’t cover them. We have the same situation, having to tell people, ‘I’m sorry. We can’t sell to you today because we don’t have it.’ ”
The market also is strong in Kansas, where a lumber contact said his company has been really busy for the last eight to 10 weeks. Yellow Pine and Engelmann Spruce Lodgepole Pine (No. 1 and Premium) are selling the best among his customers, who are retail lumberyards.
“They’ve all been very busy,” he said. “I think with people being a little less free to run around right now, they’re doing a lot of home-improvement projects. The honey-do lists are getting whittled down a little bit.”
He, too, has had a “dickens of a time” finding enough lumber because of the mill closures hindering availability.
Next door in Missouri, the Softwood market is fairly stable, demand is steady and pricing is pretty firm mostly because of supply curtailments, according to a lumber contact. “So overall, the market is pretty healthy, all things considered,” he said.
He sells SPF and Douglas Fir (both No. 2), mainly to pro dealers and big box stores. “At least for the short term, they’re fairly busy right now,” the contact said, adding that customers weren’t sure what July might bring.
In Iowa, however, the market isn’t as good. A lumber supplier described it as “kind of flat” and blamed it on the coronavirus. SPF (Premium and Better) is the top-selling Softwood among his customers, who are about 60 percent pro builders and 40 percent do-it-yourselfers.
