Over the May long weekend Ontario and some parts of Quebec unusually warm and high humidity caused the worst storm to hit very quickly leaving in its wake extensive damage to many towns in the storm’s path. Many were without power for days, there was extensive home damages as flying debris and trees were knocked down, hydro towers were broken and power lines torn down. Clean-up crews and hydro employees worked around the clock to restore services in many areas. Some towns declared states of emergency due to the extensive damage.
With the July construction period taking place, there is the usual slowdown in the Hardwood sector. As we headed into early summer, some contacts commented green lumber production was more readily available than earlier in the year and had reached targeted levels. On export markets transportation issues persist it was noted.
Ash volumes are reported as low, with some having stopped cutting this species and selling the logs instead, which are then exported. Less Ash is also attributed to the Emerald Ash Borer which has ravaged this species. Domestic and international markets, however, are absorbing Ash production.
Sales for the regionally important species of Hard Maple remain brisk to cabinet and wood component manufacturers. Green production has picked up, causing a slight easing of price pressures. Kiln-dried inventories are slim, noted some contacts, with sellers commanding higher prices on new orders.
Cherry exports remain strong to China, but shipping delays are an issue. On the domestic front, sales of this species are rising slightly. Sawmills are having no difficulty obtaining orders for green Cherry. Prices are noted to have dipped slightly for thicker stock items, however. Kiln-dried prices, on the other hand are firm to higher. Some areas were affected by unusually warm weather or wet conditions as spring came to an end.
Hickory sales are being buoyed by the residential flooring sector in Canada and the U.S. It is a very popular trend for new homes and remodeling projects. There is also interest of this species from producers in Asian countries for various finished products such as flooring and tool handles.
A range of markets continues to demand Soft Maple. Green lumber buying has improved as well as for higher whitewood production at sawmills. In some cases, drying operations are working to fill orders with no additional stock to offer for prompt shipment. Prices have risen accordingly for all grades and thicknesses.
Flooring manufacturers commented they have sufficient Red and White Oak inventories for their needs and business is good, while others are experiencing a shortage of supplies and lack of customers. Sales to Vietnam are doing well for White Oak Nos. 2A and 3A.
Green Red Oak has seen an upturn in availability on markets for some areas, with prices declining slightly. Kiln-dried Red Oak availability is not very high compared to demand, especially in the U.S. and to China, which has raised prices.
Contacts noted the Common grades of White Oak are moving well at a steady price. In late spring sawmills were able to produce most grades and thicknesses of green White Oak. Common grades are noted as moving well also. Business is brisk for kiln-dried No. 1 Common and No. 2A White Oak, added contacts.
Many producers of Poplar as well as wholesalers, moulding and millwork plants and other secondary manufacturers filled their inventories in spring, and so a slowdown took place in purchasing towards end of May for this species. There is ample supply of this species and domestic demand is strong. Prices trended down in April and May, according to published reports for green Poplar. Kiln-dried prices have been steady to firm, however.
Walnut is readily available and selling well, especially for kiln-dried Walnut for No. 1 Common and No. 2A grades.
Some contacts noted furniture manufacturers are providing for some solid orders, and so Hardwood framestock suppliers are keeping busy. Pallet manufacturers boosted their onhand supplies of cants and lumber over the past couple of months, keeping sales at a brisk pace. Board road markets are reduced due to the slowdown in the gas and oil sectors.
Lignum Veneer of Victoriaville received a repayable contribution of $200,000 enabling them to make the Industry 4.0 shift by improving its innovative processes and productivity. The Honourable Pascale St-Onge, Member of Parliament for Brome–Missisquoi, Minister of Sport and Minister responsible for CED (contributions in economic development) made the announcement. Lignum Veneer is known for its seaming of veneer sheets made with various types of wood. Through this support, the business will acquire and install specialized plant production equipment, which is currently operating at full capacity. Digital technology will make it possible to improve the constancy and quality of this innovative SME’s products, while also maximizing value-added tasks.
“SMEs are at the core of innovation and economic development in our communities, and it is a priority in our government’s economic recovery plan to support their growth and innovation projects. With our government’s financial assistance, Lignum Veneer will be able to improve its production line and meet the growing demand for its products. Its contribution to the economic vitality of Victoriaville and the Centre-du-Québec region is significant, and our entire economy will benefit from the success and spinoffs of its project,” said Minister St-Onge.
