Grade lumber is not as vibrant on the domestic markets as in spring and summer. With sawmills ramping up production, concentration yards, wholesalers and end users received more lumber these past few months. Contacts commented that markets are performing well. Flooring manufacturing is strong at this time, as are the markets for wood furniture, cabinets, moulding, millwork and wood components due to the strong housing and renovation markets continuing to perform well.
In mid-October, many people were very happy to hear the news that the U.S. was reopening its borders in November – another step along the path to a new normal way of life. At the time of this writing there were not many details, and the top question was whether the U.S. would consider the many Canadians who received two different vaccines to be fully immunized. There will be consistent, stringent protocols for all travelling to the U.S. – whether by air, land or ferry, and will account for the wide availability of COVID-19 vaccinations. More details were awaited in the coming weeks of the announcement. This was good news for the economies on both sides of the border, and another step to a return to normal.
Demand for most grades and thicknesses of kiln-dried Ash is steady, but production remains low due to the Emerald Ash Borer, and to slightly stronger log exports. Some contacts noted prices are firm for this species.
Markets for the regionally important Hard Maple are favorable. Summer demand was high and prioritizing cutting/drying schedules to avoid possible stain supported sales of this species. Contacts noted that certain kiln-dried items were elevated, and prices were softening in selected transactions. Green prices showed no evidence of decline, as prices were still rising.
Wholesalers are seeking out more green Soft Maple, as are the furniture, component and cabinet manufacturers. With sawmill production increasing slightly, it is only marginally adequate to meet buyers’ needs. Prices also saw a slight rise to Sap and Better and No. 1 Common and Number 2A grades. Prices are firming as well for kiln-dried Soft Maple.
The primary sales for Cherry are to the U.S. and to China. Contacts noted that developing production was not being fully absorbed by these markets. There was not a large gap between supply and demand as loggers, sawmillers and drying operations limited Cherry output. Some prices were reported to have gone down depending on areas contacted.
Demand for Red and White Oak remains popular in markets. With the housing market sectors doing well, residential wood flooring manufacturers are reporting vibrant sales. Many companies are purchasing inventory to meet their targets. Competition among flooring plants for available lumber eased due to the combination of increased sawmill production and strong lumber receipts the last several months.
Demand for Red Oak is dependent on grade. Green and kiln-dried No. 1 Common and Better Red Oak are not moving as much as earlier this year. Business in the U.S., Mexico, Canada and other export markets are keeping supplies under control, with prices relatively stable.
Poplar sales are strong in almost every market, except for Vietnam and China, where buyers are pressing for lower prices.
Walnut demand regained its momentum in October as it gained traction on markets. Drying operations are purchasing most grades and thicknesses of Walnut.
Furniture companies are looking for large volumes of framestock for their finished goods, but supplies are not abundant. Demand for pallet cants and lumber is also vibrant.
The Quebec government announced in September it had halted authorized logging operations along the Péribonka River in the Lac-Saint-Jean region, and that the area would be designated a protected zone. The Péribonka River is seen as part of our natural heritage and it must be protected, commented the Environment Minister in a communiqué. The announcement will allow authorities to take stock of how forests are used in terms of logging, resort and tourist activities, noted the provincial Forestry Minister.
Consultations with regional stakeholders were taking place over the next months following the announcement to determine how much of the territory requires protection and can be used for tourism.
