Hardwood lumber sales in the Southeast remain strong, with some seeing the markedly increased pricing of the last few years starting to level off. However, supply chain challenges remain for most, as the industry adjusts to finding normalcy post-pandemic.
According to one sales manager for a distribution yard located in Tennessee, finding customers isn’t the problem. Rather, physically getting the lumber to be sold is where many are struggling. “For right now, it appears every time we get a load of almost anything, we can sell it,” he stated. “Getting the load is the hard part.”
As the supply chain struggles to find some stability amid worker shortages and COVID- related restrictions, lumber representatives are dealing with 2022’s increased costs and difficulties associated with transportation, including trucking. “You can get trucks,” he said, “but trucking is much more expensive than it used to be and it’s problematic depending on where you’re trying to go.”
“I think everyone has got the same story,” he added. “You don’t have enough people to get your production going, but for the most part, when we get a load down, it’s sold.” Also, since his company exports some of their lumber, he noted that “containers are a pain. It’s just a mess, a complete mess.”
However, for his company specifically, sales numbers reflect a continuing demand for Hardwood flooring, despite supply chain delays. “Flooring is a big one,” he said, “because that’s obviously half of the material, usually with No. 2 Common, and the flooring markets still appear to be good. They’re slowing down some, and for the Face & Btr. White Oak, what we’re hearing from our export sources is that the Europeans are starting to back off a little because they’re worried the price is going to fall. So that’s where that’s coming from.”
A lumber sales representative who works for a lumber supplier in Virginia notes that they are likewise feeling the strain of export hassle. Her company sells exports of Red and White Oak, Poplar and Walnut, 4/4 through 10/4, No. 3 Common and Better. “White Oak and Walnut are selling best,” she said, “but container shipments are backed up.”
When discussing the current market compared to six months ago, one source noted that the market might be a little softer because he’s seeing some price reduction in Face Red and White Oak. Added to that, he has noticed that Poplar in Nos. 1 and 2 Common are coming down a little bit in price. “That could just be that there’s enough supply on the market and people aren’t bidding the price up,” he said, “because that’s what we were seeing last year, all year long.”
The bulk of his company’s sales are in Red and White Oak, Poplar and Hickory. “White Oak, Red Oak, anytime I get a load, I can sell it,” he continued. “The exception is Face & Btr. White Oak – it’s starting to get a little sluggish. But in the 1s and 2s, as soon as I get a load, it’s gone.”
Another purchaser from a North Carolina sawmill is optimistic about the pricing and supply chain challenges moving forward. “Transportation is a killer but it has eased up a little bit,” he said. “At one time, the cost was astronomical per mile, but that has come down and trucks are a little bit more available.” His company sells Red and White Oak, Poplar, Ash and Cypress in all grades to FAS. Among those species and grades, he notes that White Oak sells best by far, while Red Oak is weakest.
“I don’t believe it’s quite as good as it was six months ago,” he noted, “but there’s two ways to look at it. You look at what you ship or the volume of money that’s coming back in—six months ago, the money was rockin’.”
