The market for Softwood lumber runs the gamut in the Southeast, from “exceedingly good” to “OK” to one firm not buying much Softwood due to the high prices.
In Alabama, one lumberman stated, “The market is exceedingly good right now. It’s very good. Obviously lumber prices are historically high and it’s very difficult to get material. But other than that, it’s great.”
The market is “about the same” as it was six months ago, he observed.
He sells Pine and Spruce in No. 2 and Premium to retail lumber yards. “They can’t seem to get material fast enough,” he noted.
In Louisiana, a lumber provider said, “Our sales are still OK because we’re doing a very good job of picking the battles that we can win. There’s very limited fiber availability in certain items. So, we’re having to look at other items in other markets. I’m over the Pine division here. We do a lot of Yellow Pine. The sales are OK; they’re pretty typical for this time of year.”
Sales are better than they were six months ago, he said, “because everyone is becoming used to this new normal. I think availability is more challenging because we’re seeing the mills struggle more with Coronavirus, and they’re having a lot of sickness in the mills. So, there’s been some price appreciation and it’s supply driven.”
This company sells Southern Yellow Pine and smaller amounts of Eastern White Pine, Hem Fir, and Doug Fir.
Customers range from distribution yards to end users to manufacturers. “We’re hearing that in some markets, they’re having a tough year,” he remarked. “Some of that is because of price depreciation or lockdowns in the areas they are in. A lot of the manufacturers are getting used to this new normal. So, they’ve learned to manage it better. They’re working with smaller crews and not getting as much product pushed through. In other markets, it’s going OK. It’s strange.
“Inland trucking is not so much an issue right now,” he stated. “We’ve seen a little bit of price appreciation there. The biggest thing we’re seeing in transportation is container availability, and the ocean freight carriers have been pushing up prices. It’s hard to get containers. We’ve heard from carriers that a lot of the empty containers that were in the States that would typically go out loaded, moved back to China empty. I assume that’s in anticipation of maybe our new administration changing some import requirements. They’re gearing up for that. So, it’s hurt container availability, and rates are up. Some lanes are up over 50 percent.”
A Mississippi lumber provider said his business is “pretty much priced out of everything in Softwood. It’s just crazy. We’re not really buying a lot of Pine right now.” Six months earlier, he noted, his company did more business in Softwood.
When the company does buy Softwood, it’s Southern Yellow Pine, Industrial Grade.
This lumber provider sells to end users. He observed that the markets for Softwood lumber are good. “The supply has just been so crazy with the prices which we have never seen at this level.”
