Heading into summer, businesses are busy ramping up their inventories for the anticipated season. There were concerns of lower log decks in late spring for certain areas, as well as along the U.S. border states, and also of potential lost production during that time.
Some sawmill contacts stated getting Ash logs was a challenge at times, but for others Ash itself is moving well. Green and kiln-dried No. 1 Common and Better Ash is moving steadily. Concentration yards are purchasing fair volumes of green No. 2A to dry and resell to customers, but demand, they note, is not as strong as for No. 1 Common and Better.
The regionally important Hard Maple continues to be in steady demand both from sawmills and sales operations. No. 1 and 2 White and good colored Unselected Hard Maple are readily moving. Some report having ample inventories and so are controlling purchases. For mills, there are ample outlets to ship the lumber.
Demand for Soft Maple is making it hard for mills and yards to keep up with the demand for green FAS1F and kiln-dried FAS, which are the strong sellers on the market. Sales of Unselected No. 1 Common and color selections of No. 2A Soft Maple are weak. There has been a slight improvement in Sap and Better No. 1 Common, but it is not strong.
Shutter and blind manufacturers have reduced their purchases of Basswood, as stocks are plenty. The moulding and millwork sector has also reduced its usage of this species, as Poplar was readily available, as has been the case for the last several months.
Cherry demand is low. Sales of No.1 Common and Better are fair noted contacts. Sales of this species are based on color specifications. Cherry exports were down compared to last year’s figures, yet remain steady at this new level.
Other export markets are also helping keep kiln-dried inventories in check.
Hickory sales are also down, and for some it is seen as their slowest seller. Sales of the upper grades are doing better than the common grades currently.
Red Oak demand for kiln-dried supplies is seeing orders to export and domestic markets. Some are having difficulty moving No. 2A, and prices firm for No. 1 Common and Better, but flat for lower No. 2A. Drying operations were limiting purchases as weather warmed during the past few months.
Markets are absorbing supplies of White Oak for most grades and thicknesses, and the demand is steady.
Poplar interest to the U.S. is steady as to some export markets such as to Vietnam, mostly for the common grades.
Supply and demand are noted to be in balance. Moulding and millwork producers noted decent finished goods sales and are processing good volumes of this species. Most are well stocked at the moment and demand is less than earlier in the year.
Walnut sales are moving well both on domestic and international markets. Sawmills are able to sell developing green lumber to various outlets.
According to Canada Mortgage and Housing Corporation (CMHC), the total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada decreased 7 percent in March (242,195 units) compared to February (260,047).
The six-month trend in housing starts decreased 1.6 percent from 247,971 units in February to 243,957 units in March. The trend measure is a six-month moving average of the SAAR of total housing starts for all areas in Canada.
The actual number of housing starts across Canada in urban centers of 10,000 population and over was up 16 percent to 17,052 units in March compared to 14,756 units in March 2023. The year-over-year increase was driven by higher multi-unit starts, up 19 percent and higher single-detached starts, up 2 percent.
March’s actual housing starts were 10 percent and 15 percent higher year-over-year in Toronto and Vancouver, respectively, because of higher multi-unit starts, while single-detached starts decreased. Montreal’s actual starts decreased 1 percent, dragged down by lower multi-unit starts.
The monthly SAAR of total urban (centres 10,000 population and over) housing starts decreased 7 percent, with 220,743 units recorded. Multi-unit urban starts decreased 8 percent to 180,229 units, while single-detached urban starts decreased 4 percent to 40,514 units.
The rural starts monthly SAAR estimate was 21,452 units.
Total SAAR housing starts were up 27 percent in Vancouver, driven by an increase in multi-unit starts. Toronto and Montreal declined 26 percent and 5 percent, respectively due to decreases in multi-unit starts.
