The markets for Softwood lumber are strong or steady in the Northeast.
“The market has stayed very good so far even considering inflationary pressures,” said a sawmill representative in Maine. “It seems like our product in our marketplace is doing very well still and business has been – not what I would say COVID-like crazy –good, but supply and demand seem to be equal, so the takeaway is really good from the mill to the end user.”
Looking backwards a few months, he stated, “I’d say our sales are at the same clip, the same level. We make so much lumber every day and that’s what we sell every day, and we do that every day. I would say that sales are at a good clip, as good as it was.”
He sells only Eastern White Pine in all grades and patterns in 4/4 boards and pattern stock.
He provides Softwood lumber to his company’s own retail stores, wholesale distribution, big box stores, manufacturers, wholesale brokers and buying groups. “Our customers are selling well,” he noted. “Business is good but whether it’s the time of year or true demand coming off a little bit because of inflationary pressure, everybody’s busy but they feel it’s not quite as busy. They feel like the rest of this year will be OK, but everybody’s wondering what will come out of these economic times.”
He said, “Transportation is very expensive. It’s not affecting moving our product but it’s affecting cost, with inflation to us and our customers. Moving our product is being done in a timely fashion.”
“Our market has been strong,” stated a Connecticut lumberman. “Order files are still good, but we’re starting to feel a little bit of a backing off of business. I think that’s due to the economy. Partly due to interest rates, people are being a little more cautious about their purchasing lumber. The market’s at the high pricewise but starting to go in the other direction. People are hedging their bets a little bit, keeping the inventories lean. Plus, there’s been a little slowdown in sales. Prices over the past couple of years have risen at exponential rates and I believe for the first time, we’re starting to see the pricing going down. You’re not going to buy right now; you’re going to wait and see if the market comes back a little bit.”
Compared to several months ago, he said, the market is worse.
He sells Doug Fir and Eastern White Pine in all NELMA grades, Sugar Pine and Ponderosa Pine in all grades, all in 4/4 – 16/4 thicknesses.
Seventy percent of his customers are lumberyards. Thirty percent are secondary manufacturers. His customers’ sales are still strong, he observed.
“Transportation is always negatively affecting our business, especially fuel costs,” he remarked. “That’s very detrimental to our bottom line when you see those kinds of fuel increases.”
In New Hampshire, a sawmill representative said his market is “still pretty good” even though it has been steady. “I’d say it’s about status quo,” he stated. “It’s been about the same for the last three or four weeks. It’s been the same pace, on the quieter side, for the last year or so. But it’s still pretty good, too. So, maybe it’s back to normal. I’d say it’s comfortable. Some items are busy and they’re setting the world on fire, and some are slow. You have some hot movers and some slow movers and others in between.
“The market is just quieter,” he remarked. “I’m doing about the same business and not having to say ‘no’ all day. The company’s in the same position but the sense of normalcy is there.”
He sells 4/4 Eastern White Pine only in all NELMA grades. His customers include distribution yards and brokers mostly. “The distribution in various parts of the country seems very strong,” he observed. “Retail seems very strong, too. The brokers and end-use manufacturers are hit-or-miss; some are really busy while some have slowed down a bit.”
He said that, for his company, transportation hasn’t been bad. “Trucks have been good. Geography is probably the main reason. We’re right off Interstate 89, an hour and a half from Boston, all interstate.”
A Massachusetts lumber woman said, “Our market is still steady. There’s a lot of demand.
“We have a lot of people looking for just-in-time turnaround,” she noted. “I have heard some comments from some of my customers that they’re starting to catch up on their order files, too.”
Compared to several months ago, the market is “about the same, pretty steady,” she remarked.
She sells Eastern White Pine and Western Red Cedar in all grades and patterns. Eastern White Pine in Common grades is her best seller.
Her customers are industrial manufacturers and independent lumberyards. “The comments we’re getting is that their sales are up but some companies are starting to catch up on their order files.
“We’re fortunate to have a network of good carriers that make sure we’re covered for transportation,” she stated. “The biggest struggle is everyone looking for lumber tomorrow. When it takes three to four weeks to fulfill an order, it’s hard to do that within a request for a five- to seven-day turnaround. I think people are trying to get orders filled; they’re still in that mentality that they need to get products out and they’re not thinking long-term. They find themselves lower on raw material than they anticipated.”
