In the Southeast, the Hardwood lumber market, depending on who you talk to, is “robust,” “up and down” or “kind of soft.” The segment of the market that a company is in may have a lot to do with each assessment of the market’s health.
For example, a maker of Hardwood flooring in Arkansas states: “The flooring market is extremely robust and doing very well. I think it has some more room to grow. I’m anticipating at least six months of improved demand.” Asked how the market compared to six months prior, he quickly said, “Better, certainly.” His company manufactures Red and White Oak, Hickory and Walnut into flooring. Customers are wholesale distributors nationwide. “Their business is for the most part opened back up in places like California and New York that were shut down,” the source said. “They’re seeing an uptick in demand, an increased, robust demand for housing, and for wood floors going in houses.” He noted that transportation continues to be an issue. However, he stated, “Labor is the main issue throughout all industries.”
In Tennessee, a lumber provider said the market is up and down, but he has seen improvements in his market segment. He also provided a high-level perspective on the market as a whole. He observed, “We’re just kind of seeing a rambunctious hand being dealt from every direction. There are still some trade war issues and China’s lack of buying, COVID creating problems: lumber problems, labor problems, inspector problems.
“I think there’s still a substantial lack of supply,” he stated. “Demand is reasonable. I think supply is still so much less than the demand we have. We’re just kind of struggling, trying to keep up with this up and down market. Six months ago, flooring mills were not talking to sawmills, and now they’re in a battle to try to get what little bit of low-grade lumber is being produced. One minute, ties are good; the next minute, they’re a little slower. The same is true with pallet cants. This is just more of the life in the lumber business.
“It’s a different market than it was three months ago,” the lumber provider observed. “It’s being driven by different factors. I think for us, our market – we have seen improvements in our segments. That’s just for us, because of what we have historically done. It’s all upper grade and high grade. The biggest majority of FAS markets are outside the United States when it comes to most of the items, with the exception probably of Poplar. We’re still getting our domestic business, which is driven by the custom work. But the international markets drive the market for what we do and not necessarily just the Asian markets. We’re beginning to see life out there in all markets to some degree.” The business sells its products to exporters and importers in other countries, manufacturers and distributors. The lumber provider noted that transportation rates are rising rapidly domestically. International rates, he found, are “fairly stable.”
A Mississippi lumber provider said the market there is “just kind of medium. It’s kind of soft. It’s not just really wide open, but it’s better than it was in April and May.” He felt like the market was “getting better maybe. I think we’re headed in the right direction right now if we can sustain it. I hope and pray we can sustain it.”
The lumber provider offers Red and White Oak, Poplar and Ash in all grades, mixed wood, frame stock, mat timbers, etc. “We’re a grade sawmill,” he stated, “but we’ve got a lot of flexibility.” Best sellers are White Oak, then Red Oak, then Poplar and Ash.
He sells to concentration yards, distributors and end users. “Some of their sales are brisk,” he observed. “The flooring business has picked up and cabinets and moulding are somewhat better.” He noted that it is “tremendously hard to get trucks.” He believes there are a lot of issues with electronic logs and the hours truckers can drive. “It is a tremendous challenge.”
