According to lumber contacts, even though production has been down, many species, grades and thicknesses are exceeding market demand. Exports to the U.S. and on international markets are also weak for key grade lumber items. Some say markets are very slow, almost at a standstill. Lumber is moving for whitewoods but not sufficiently to stabilize these species which are major products in Ontario and Quebec. Hard and Soft Maple supplies are ample, and buyers are avoiding them, as finished goods sales are also slow. Such is the case for many sectors in the market at present.
Ash is one of the species that appears to be doing well compared to others as domestic sales are decent, while international sales, noted some, are good. Kiln-dried inventories are thin as green lumber production has been controlled for some time. Kiln-dried stock prices are trending up. Wholesalers and secondary manufacturers are trying to purchase more supplies for their inventories.
Aspen is selling to a confined marketplace, and production has not shifted to the new demand, so there is sufficient Aspen on hand with prices trending down.
Contacts noted that Basswood demand had slowed quite a bit over the last three months as markets for Common grades were weak from most sectors, and pallet manufacturers had ample material inventory and were purchasing Basswood cants and pallet lumber at a minimum. Finding buyers was challenging for some, although upper grades were reported as faring better than the Common grades. Kiln-dried inventories have, however, risen despite slow sales, and prices are lower.
Demand for Hardwood lumber has contracted, but sawmill production has been steady or increased in some areas. Thus, supplies are outpacing demand and prices are decreasing. Birch demand is down and kiln-dried inventories of this species are high for Birch, Hard and Soft Maple. Buyers are only purchasing what they need to replace what is being used or sold.
Secondary manufacturers are keeping Beech demand steady, however, there is stiff competition from imported goods and species, as well as plywood, non-wood products and MDF. Again, demand is low and supplies high.
Hard Maple is not selling well, commented contacts, with price sensitivity affecting activity. Kiln-dried inventories are high based on demand, thus prices are being reduced. Green Hard Maple sales are also challenging and it is difficult to find buyers, they added. As staining was a concern in May, there were some who processed certain species, such as Soft Maple. Mills struggled to find outlets for these developing supplies as markets are now more competitive.
International market demand has contracted for Red Oak, and prices are also down. As kiln-dried markets are weaker, buyers are being cautious with green lumber purchases. White Oak is doing better than most other species, contacts said, with upper grades performing well. Mills and wholesalers are selling and shipping green stocks and prices are firm.
At the time of this writing, Ontario’s fire season saw many fires in Northern Ontario, and crews were kept busy battling these blazes. Also, crews and the army were deployed to Alberta to help there as the province declared a state of emergency in May due to quickly spreading forest fires. Many communities were evacuated as the rampaging fires spread quickly caused by unseasonably warm weather, very dry conditions and high winds. Nearly 20,000 people there were forced from their homes, and properties were lost. People were advised to stay indoors due to poor air quality, and travel was advised as strictly necessary only. Over 700,000 hectares of forests burned in Alberta, which represent trees that cannot be harvested, and are no longer absorbing carbon. Oil and gas companies were forced to shut down as well, and rail traffic was interrupted.
