In the Southeast, many lumber buyers reported strong activity.
For a Virginia band mill, the lumber market was very good. “Prices are higher and all the lumber is moving,” said the company’s sales manager. “White Oak beats everything else hands down. It’s selling really well, while Red Oak is so-so.”
Poplar is holding while Walnut sales remain “huge,” she said. “Prices are through the roof on Poplar. It is moving.” She also noted that the market turned in April and May and wasn’t as good then as it is now.
That supplier markets mostly 4/4 in grades of No. 3 Common and Better to distribution yards and end users, plus export customers.
The markets at the end of 2021 weren’t so certain for a Tennessee lumber source. “Our markets seem to be in a state of pause or in somewhat of a state of being sideways, a wait-and-see, cautious stance,” said the company’s owner and chief executive officer, who handles lumber sales. “We have had such a run up of unknowns, a run up on price structure, demand and lack of supply. It seems the rush and the crush are kind of over.”
Sales were better earlier, he said. “Our business is worse now than it was six months ago,” he observed. “We expect that trend to change somewhat for the better for the beginning of the year. We are not sure if will get to where it was the last 18-24 months. Probably not, but we expect business to be decent.”
The holidays provided the industry time to back up and pause, waiting to see what products the customers will definitely need or how their business will shake out coming into the new year. “It seems to be definitely in a period of pause,” he noted. “I don’t know if that will be something that will be a tell-tale sign of the future.”
The firm handles 4/4 through 8/4 thicknesses on Poplar, Ash and Red Oak for its customers, which include architectural millwork and associated firms, as well as distributors supplying custom markets.
In North Carolina, the management of a lumberyard and dry kiln operation regarded 2021 as a good year. Toward the end of the year, however, the market began to slow. “I won’t say volume has slowed a whole lot; it’s just the pricing has come down due to production increases following the dry weather,” said the president and chief executive officer.
“Six months ago was crazy,” he added. “Pricing was increasing. Lumber was in short supply. Demand was really high. We definitely saw some big increases six months ago. Everything is relative and still in good shape. The market is now just different from six months ago.”
The company focuses on supplying Poplar in thicknesses ranging from 4/4 through 8/4. It supplies product to moulding and millwork customers, as well as furniture manufacturers and distribution yards.
Transportation woes remain a struggle, with the trucking shortage making it difficult to source product to market domestically, he said. For exports, huge increases in container and ocean freight rates should keep costs high. “We will probably see continued issues in freight rate increases into the new year,” he predicted. Many containers returned to Asia were shipped empty, due to shippers not wanting to pay the high rates. “Maybe some of that will ease up a little once supply channels become more full, but right now, it’s still a big challenge,” he stated.
The company’s customers talk of favorable business. “All our customers are saying things are going pretty well,” he said. “Of course, issues as far as supply and transportation keep us concerned. But all in all, all the customers’ furniture, moulding and distribution customers continue to have good business. We are hopeful that the first quarter of 2022 will be good for us, even though we have seen prices decline some. Business will be pretty good.”
