Sawmill contacts commented that log supplies had improved recently. However, log decks were much lower than normal at this time for many of them. We are at a time when sawmills build their inventories ahead of wet fall weather and winter. Some are preparing while others are hesitant to build up log supplies due to lackluster sales and their low confidence of market conditions for the coming months. Even though the U.S. housing sector saw a slight increase over the summer and early fall, figures are not similar in Canada, although they have increased slightly. Since demand in the hardwood sector overall is rather low, many do not feel the urge to increase their inventories at this time.
Ash sales are obtained by overseas markets rather than U.S. and domestic markets at this time, although exports are not strong. Sales are mostly to China, with activity sufficient to keep inventories of most items in check.
Market conditions for the regionally important Hard Maple varied by grade and color selection, noted contacts. Green No. 1 and 2 White and good color Unselected FAS and 1F and kiln-dried FAS were good sellers. Demand for No. 1 Common is behind upper grades but is not bad. No. 2A was reported as slow, with interest in brown Hard Maple being poor.
Soft Maple sales are similar to Hard Maple with upper grades drawing interest. 5/4 and thicker stocks are harder to come by for Soft Maple. Sellers are looking for more No. 1 Common Soft Maple, and No. 2A and brown Soft Maple, where in some cases these are nonexistent.
Basswood sales are hard to come by, and what is being produced is going to pallet stock manufacturers or other industrial products. Thus, production overall is low, however the gap between supply and demand is closing.
Cherry markets are also down, with Chinese buyers placing fewer orders than earlier in the year, although seen as the best market for this species. On the domestic and U.S. front, demand for Cherry is weak.
The moulding and millwork sectors are strong users of Poplar, and this sector appears to be performing better than other sectors. Shipments to Vietnam were good.
Hickory inventories in manufacturing facilities are ample and so purchases are low at this time. Kiln-dried Hickory is also moving slowly.
Exports of kiln-dried Walnut to China is moving well. Some companies would like to see more green Walnut come their way as volumes are down.
Hardwood flooring and truck trailer flooring manufacturers curbed purchases due to low demand for finished goods. Red Oak market conditions are worse than a couple of months ago, and White Oak is somewhat slower. Kiln-dried No. 1 Common and Better Red Oak is moving rather well to export markets, while domestic sales are flat. Since production has been low for some time, supplies of most kiln-dried items are lean. Wholesalers are seeking more No. 1 Common and Better Red Oak orders from sawmills, but common grade orders from the flooring plants are down.
White Oak production is trending higher due to reduced demand by stave plants for logs, which is seen as a good thing by other lumber users who are looking for more White Oak for their customers. Kiln-dried White Oak demand is good.
