Within the Southeast region, some sources have noted improvements in the market compared to several months ago, but others continue to face ongoing problems in their operations.
In Georgia, a sawmill representative reported that their sales were doing well. However, he added that their biggest challenges were from other factors.
“It’s not bad, we’ve had a sudden nice uptick on low-grade. The pallet cant business has picked back up here in recent weeks and it’s doing very well,” he commented.
Additionally, he mentioned that some of his higher grades of Hardwood were selling well. “My first and seconds FAS markets continue to be good, and orders continue to be available. Prices are still holding on at a nice level,” he added.
His two mills handle mostly Red and White Oak, and Poplar with a little bit of Ash, Soft Maple, and Cherry in a variety of grades and in the thicknesses of 4/4, 5/4, 6/4, 8/4 and 10/4.
When asked about transportation he said that it has been a struggle. “The biggest problem I have doesn’t have to do with the markets. It has everything to do with freight. And by that, I mean the cost of freight.” He added that overall, his labor was doing good, but they are having some trouble with logging.
In Mississippi another contact said that his sales were getting better at the time of this writing and commented, “It’s no question it’s better than six months ago.”
He sells to end-users along with pallet, moulding, and flooring manufacturers. His company offers Red and White Oak, Poplar, Ash, Gum, and Hickory in 4/4 and 5/4 thicknesses. He noted that White Oak is currently his best-selling species.
“Transportation is okay right now and the availability with trucks is getting better. Labor is an ongoing issue and since Covid it’s just gotten worse,” he remarked.
One Alabama lumberman expressed that the initial part of the year has been going at a slower pace and is having a big problem with supply.
“We could be better if we had more logs. What’s happening is the paper mills in this region shut off the pulpwood. And without the pulpwood the loggers don’t want to bring the Hardwood sawlogs. It was about mid-February when suddenly, our supply went away about 70 to 80 percent.” He noted that he is not sure if the cause is from them using a different type of paper or if the paper mills inventory is backed up.
When things are running normally his company supplies all NHLA grades of Red and White Oak, Poplar, and Gum mostly in thicknesses of 4/4 with some 5/4 and 6/4. He added that White Oak is selling the best for them at the time of this writing.
His customers include flooring and cabinet manufacturers, along with millwork firms and concentration yards.
He stated that transportation is plenty available, receiving multiple calls a day from freight forwarders, but he just can’t secure the log supply his company currently needs.
