Southern Comments

GENERAL

Comments from March 20, 2026.

Concern over increasing freight rates punctuated conversations with all Southern hardwood contacts over the last week.

The American and Israeli war on Iran has led to a partial shutting of the Strait of Hormuz and skyrocketing global oil prices. Domestically, prices for gas and diesel fuel have jumped around 25% since the bombing campaign began on February 28. The oil shock has put pressure on area sawmills as well as those who engage with export markets, with freight rates and surcharges rising sharply.

“Freight rates and truck availability are increasingly concerning,” one trusted hardwood seller told HMR/Fastmarkets. “Freight costs are beginning to eat into our margins on some of the longer hauls.”

Last weekend, Secretary of Energy Chris Wright said there were “no guarantees” oil prices would fall in the next few weeks, increasing the potential for inflation to start rising again. It could also make the Federal Reserve more reticent to lower interest rates in the short to medium term as affordability remains a major concern for US consumers.

The most notable pricing story in the South this week is another round of decreases to low-grade green White Oak, while the #2A&3A Red Oak market has stabilized. The market for industrials has rebalanced itself, though one contact said quotas are starting to appear for sawmills cutting crossties west of the Mississippi River. Some secondary manufacturers have shown a rekindled interest in Hickory and wormy Soft Maple of late, but few contacts expect this to last.

ASH

Logging for lowland species like Ash has continued strongly over the last week but demand for this species has largely plateaued. Diminished demand is reflected in reported prices, leading to drops to the listings for 4/4 Fas&1f and #2A and 5/4 #1C&Btr. There are no price changes for kiln dried Ash.

BEECH

PECAN & HICKORY

Thanks to renewed demand from secondary manufacturers, there has been more upward price movement in green Pecan & Hickory. The listings for 4/4 through 8/4 #1C, #2A, and #2B rise.

SAP GUM

SOFT MAPLE

Increased demand for Soft Maple continues for a second straight week, leading to bumps in list prices for #1C and #2B across all four thicknesses. One contact said he would be surprised if the elevated demand lasts long. Soft Maple production is not large in the South, but stable.

#2A&3A OAK

The downturn in crosstie purchases across the South has wreaked havoc for low-grade green Oak markets. Tie quotas have been in place for sawmills in Tennessee, Mississippi, Alabama, Georgia, and the Carolinas since the start of the year, and those west of the Mississippi are starting to be impacted. Demand for #2A&3A Oak from residential flooring sector is more or less static; purchases by truck trailer flooring plants remain slow. A combination of these factors sees list prices drop for green #2A&3A White Oak, in both 4/4 and 5/4. The #2A&3A Red Oak listings are steady this week.

RED OAK

With production matched by domestic and international interest, the Red Oak market is steady. Reported prices keep the listings for green Red Oak intact, while decreases to the lower ends of the 5/4 #1C ranges are the only kiln dried changes. A contact at a large Southern sawmill identified kiln dried 4/4 Fas as a star seller right now.

WHITE OAK

Outside the drops to the list prices for green 4/4 and 5/4 #2A&3A, the White Oak market mirrors that of Red Oak in terms of stability this week. Recent months have seen contacts complain that kiln dried #1C&Btr White Oak has been hard to move, though increased international demand has recently lessened this issue. The only pricing changes on the kiln dried side drop the high ends of the ranges for 4/4 #1C.

POPLAR

The market for green Poplar is evenly balanced, with interest for the species and its Southern production meeting comfortably. Outside thick stock, the market for kiln dried Poplar is in a similar position. Lackluster domestic demand for 6/4 and 8/4 Fas leads to decreases for the listings and lower ends of their ranges.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

While the crosstie downturn remains a constant talking point in the South, reported prices did not lead to any changes in the ranges this week. Published prices for framestock and board road also hold steady. Some contacts reported good movement in the cant market, but the listing and range remain untouched.

Appalachian Comments

ASH

Mills that would like to saw more Ash continue to face challenges building their log decks, due to weather-related poor logging conditions and overall resource scarcity caused by the Emerald Ash Borer. Demand is stronger for #1C&Btr than for #2A. No changes are required to any green listings and to nearly all kiln dried prices. However, reported kiln dried 4/4 #2A prices have a downward bias that warrants reductions to the listings and ranges, which ends a seven-week stretch of steady pricing.

BASSWOOD

Basswood is a minor species in the Appalachian region, even less prevalent than in the North. Most production runs are small. Supply and demand remain balanced. The published figures are aligned with reported prices.

BEECH

BIRCH

CHERRY

The supply of Cherry logs available for sawing remains tight in parts of the North Central region because some mills are receiving higher prices for their logs than average prices for lumber. Yards are still chasing green Cherry lumber as kiln dried lumber is moving well to China. The only changes to the kiln dried figures occur in the North Central subregion, raising the listings and ranges for 5/4 Fas, 6/4 Fas, and 4/4 #2A. The listings for 5/4 #1C also move up. Prior increases have all green North Central figures in order, while reported prices lift the listings for 4/4 #1C, #2A, and #3A in the Appalachian area.

HICKORY

The adage that demand for Hickory is either hot or cold continues to apply on the “hot” side of the ledger. This species is among one yard’s best-selling items, echoing similar comments from green mills. Green supplies are aligned with demand, keeping all the listings intact. However, markets are demanding more kiln dried 4/4 #1C&Btr, and those listings and noted range figures are raised.

HARD MAPLE

Green Hard Maple production has slowed, better balancing supply with purchasing by end users and concentration yards. Most of this week’s pricing information is clustered around the respective #1&2 White and Unselected listings, which remain intact. Cabinet and wood component manufacturers are consistently buying kiln dried Hard Maple, including considerable volumes of brown material. Prices in observed business hold all the published figures in place.

SOFT MAPLE

Demand is stronger for Soft Maple than Hard Maple, with sales moving at a fair pace to manufacturers of cabinets, moulding and millwork, wood components, and even case goods. Some yards, however, are reporting increased availability and correspondingly softer purchase pricing. Yet, all green and kiln dried figures are unchanged in both color classifications. Brown 4/4 Fas Soft Maple remains in strong demand, selling easier than Sap&Btr Fas for some producers.

#2&3A OAK

Residential flooring plants are increasing receipts of #2A&3A Red Oak, ensuring adequate supplies as production and sales of finished goods ramp up seasonally. #2A&3A Oak lumber sales to some truck trailer plants increased in February but declined to others; contacts report steady to slower sales in March. Prices in most observed Red Oak transactions are little changed over the last few weeks, and the listings for #2A&3A and #2A Alone remain intact. Most reported #2A&3A White Oak prices are similarly unchanged following last week’s reductions.

RED OAK

As the most prevalent species across the Appalachian region—and with production seasonally shifting away from whitewoods—Red Oak output will likely increase in the weeks ahead. Presently, markets are absorbing developing supplies, holding prices steady following declines for certain items in prior weeks. Kiln dried #1C&Btr moves at a fair pace to domestic and Chinese buyers, though only 4/4 Fas prices have an upward bias that lifts the listings and low ends of the ranges. The published figures are in order for 5/4 and 6/4 stock, while information lowers the noted range figures for 8/4 Fas and #1C.

WHITE OAK

Demand for this species is good enough for several contacts to list it among their bestsellers, as they have done for several months. Yet interest in White Oak logs from the stave sector is way off, resulting in higher #1C&Btr lumber production. Downward price pressures continue, driving another round of reductions to the listings for 4/4 through 8/4 Fas&1f. On the other hand, reported kiln dried prices have stabilized, allowing the 4/4 Fas listings to hold steady for the seventh consecutive week and the 4/4 #1C listings to hold steady for the fourth straight week.

POPLAR

According to a large wood products manufacturer, its utilization of Poplar shifted strongly toward the US commercial sector in 2025 and continues in 2026. The uptick stems from a combination of stronger commercial construction activity, certain competitors exiting the market, and tariffs increasing the cost of foreign-made competitive products. International activity lacks energy, especially for the common grades. Reported green and kiln dried transactions point out pricing consistent with last week, allowing all but the kiln dried 4/4 #2A listings to stand. With this week’s decline, the net listing for 4/4 #2A has fallen $30 over the last month after showing no movement over the prior four months.

WALNUT

Markets for Walnut have slowed from the fast pace that occurred from last fall through early 2026. Reported prices have stabilized following steady runups, allowing the listings to stand, even as some buyers previously stated it was possible their purchase prices and volumes would fall back in March. Kiln dried supplies are now meeting buyers’ needs after lagging demand for certain items, primarily in 4/4 and 5/4. The #2A&Btr listings and ranges are reflective of recent activity.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

Little changed over the last week for framestock: limited supplies are sufficient for buyers’ limited needs. The ranges for Oak and Mixed species framestock hold steady.

Sales contacts are experiencing fair to somewhat stronger demand for cants, while pallet manufacturers report adequate raw material and finished goods inventories. Previous adjustments have the cant listing and range in order.

Demand for new crossties remains weak due to high existing inventories and limited capital spending by railroads amid potential mergers. Railroad companies Union Pacific and Norfolk Southern—currently engaged in merger discussions—plan to re-file their merger application with the Surface Transportation Board at the end of April, after the Board rejected their initial application as incomplete. Transactions point out steady 7x9 crosstie pricing.

Markets for board road have not gained traction from the tepid levels seen for months. Rising oil prices tend to increase oil production and associated spending on infrastructure, but these are early days. For now, supply and demand for board road in the Appalachian region are balanced, and reported prices are static.