Southern Comments

GENERAL

Comments from March 27, 2026.

Increased freight rates and limited trucking availability are building as major issues for Southern sawmills as the hardwood lumber industry continues to feel the impact of the American and Israeli war against Iran.

Already four weeks long, the conflict has created an oil shock that has pushed up freight rates and shipping surcharges for commodity markets across the world. The disruption comes at a time when the Southern lumber trade was beginning to settle back down after a tumultuous opening to the year headlined by the region’s crosstie downturn and the US Supreme Court’s tariff decision.

A contact at a major area concentration yard reports good business but admits freight is becoming a major challenge. “Trucks are nearly impossible to get,” he said. A longtime hardwood seller in the Carolinas is having similar issues.

“The lead time for a truck is getting really long,” he said. “A month ago, I could contact a trucking company at 9 in the morning and by 11 I’d have as many trucks as I needed. Now, it can be up to two or three days for a long haul.” The cost of container shipping is yet to be significantly impacted by the conflict, providing exporters a ray of light.

ASH

The unusually warm late winter and early spring have meant lowland logging conditions for species like Ash have been good, though interest in it is not putting pressure on production. A downturn in demand for domestically produced thick stock Ash amid higher Chinese and Vietnamese production drives decreases to the green 6/4 #2A&Btr listings. Conversely, increased international demand is pushing up prices for certain kiln dried items. The listings and ranges for 4/4 #1C all increase, as do the lower and upper ends for 4/4 #2A.

BEECH

PECAN & HICKORY

SAP GUM

SOFT MAPLE

After two straight weeks of increases, prices have stabilized for Soft Maple. Little Soft Maple is produced in the Southern region, meaning any slight increase in demand can quickly impact prices. Contacts report limited inventories of this species.

#2A&3A OAK

After a tumultuous start to 2026, low-grade green Oak markets calmed down this week. Though all the issues impacting #2A&3A White Oak and Red Oak prices—namely tie quotas, slow residential and truck trailer flooring purchasing, and static demand for pallet cants—remain the same, there are no changes to the listings. Only two listings change for low-grade kiln dried Oak, with decreases for both 4/4 #2A Red and White Oak.

RED OAK

Market conditions for green Red Oak did not change much this week. Prices showed little movement in either direction, and all the listings stand pat. Interest from domestic secondary manufacturers is steady but balanced evenly with production of green Red Oak. There is more movement on the kiln dried side, due largely to international interest. The listings and upper ends of the ranges for 4/4 #1C increase, while reported prices push the listings and lower sides of the ranges for 5/4 #1C upward. The only decreases are for the 4/4 #2A listings.

WHITE OAK

The market is more stagnant for White Oak than Red Oak. Exports are ongoing, but markets are not very energized. None of the green White Oak listings change, and only the 4/4 #2A listings decline on the kiln dried side. Kiln dried #1C&Btr White Oak is now a lot easier to move than it has been in previous months, but demand is hardly breaking down doors.

POPLAR

Increased demand by Southern secondary manufacturers is driving price movement for green Poplar. Reported prices drive increases to the listings for #1C, #2A, and #2B in 4/4 through 8/4. Kiln dried Poplar is showing less price movement. The only changes are bumps to the listings for 5/4 #2A and drops for 4/4 #1C.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

The crosstie downturn started to impact tie prices west of the Mississippi River this week, with the upper end of its range decreasing. Contacts have been warning this move was coming for weeks.

Outside the Western tie range change, the market for Southern industrials is static. There were no changes in the listings and ranges for framestock, cants, or board road. Several survey respondents report a healthy market for pallet cants at the moment, though increased demand has not moved the needle on reported prices so far.

Appalachian Comments

ASH

Sales and shipments of this species are keeping pace with developing supplies, and most reported prices are consistent with last week. The only changes lift the listings for kiln dried 6/4 Fas. This $25 increase continues the slow and incrementally upward trend that began in early April 2025.

BASSWOOD

Demand for this species is underwhelming but so is production. The limited volume generated moves to regular customers, but new demand is scarce. Reported prices are stable.

BEECH

BIRCH

CHERRY

Cherry remains one of the better-moving species, with Fas the strongest grade, followed by #1C and #2A. Survey comments about Cherry are more favorable from the North Central than the Appalachian subregion. Reported kiln dried prices advance the listings and ranges for North Central 5/4 and 6/4 Fas, along with the listings for 4/4 #1C. Most green Cherry figures are reflective of recent transactional data, but higher prices in the marketplace necessitate increases to the listings for 4/4 #2A and #3A in both areas.

HICKORY

Hickory remains a bright spot for those mills willing to cut this dense and heavy species, known to wreak havoc on sawblades. “All of our Hickory moves out, and we just did a cut,” a longtime sawmiller said. Though most 4/4 production is sold mill run, some sawmills are pulling out the Fas. Reported and observed transactions point out ongoing strength that raises the listings for green 4/4 Fas&1f and kiln dried 4/4 Fas stocks.

HARD MAPLE

Sales activity for this species has downshifted from brisk levels months ago, to a fair-to-slower pace more recently. However, inventories that became somewhat backlogged when production increased in winter are more manageable now across all grades and thicknesses. Green availability is aligned with the market’s lower needs, and all the published figures in both color designations accurately represent recent pricing information. Kiln dried availability exceeds demand for 4/4 #1C, and the listings for both color classifications are lowered.

SOFT MAPLE

Survey reports, phone calls, and emails describe solid market interest for Soft Maple in the Sap&Btr and brown color classifications. Sales to the cabinet manufacturing sector have improved seasonally but are described more often as fair than strong. Reported green and kiln dried prices conform with those in prior weeks, resulting in no change to any figures, including #2A: a grade which has been described as “doggish” by contacts for months.

#2&3A OAK

Sales of #2A&3A Oak are steady to the residential flooring industry but have slowed to the truck trailer flooring sector. Pallet manufacturers are adequately supplied with center log material, matching fair demand for their finished goods, while tie production remains tightly controlled. Collectively, it means competition for #2A&3A Oak isn’t strong, but purchasing from the residential flooring sector is sufficient to keep prices steady or limit the extent of declines. Transactions keep all #2A&3A Red and White Oak listings intact this week. The listing for #2A Alone Red Oak holds as well.

RED OAK

Markets are absorbing production of most green Red Oak items at prices centered on the listings, stopping the slight upward trend in 4/4 Fas&1f prices and the downward trend in #1C and lower prices, at least for this week. However, sawmills are struggling to find buyers for their 6/4 and 8/4 Fas&1f output at previously published prices; the listings are lowered accordingly. Kiln dried business is tepid domestically. A yard manager said his US customers are not planning to increase their Red Oak purchase volumes due to a business climate characterized by ongoing uncertainty. Fas Red Oak is still in good demand from China, however, and reported price gains lift the listings for 4/4 Fas.

WHITE OAK

Concentration yard contacts say they have been offered a lot of White Oak lately, suggesting sawmills are having difficulties moving their entire production and that competition for available orders has increased. Past downward changes have most green White Oak figures in order this week, but 6/4 Fas&1f prices are showing weakness, driving reductions to the listings. Kiln dried production continues to move, but it takes more work than has been typical for a species with broad global appeal. Reported and observed kiln dried transactions keep most published figures intact, but, similar to their green counterparts, transactions point to lower 6/4 Fas prices that necessitate reductions to the listings.

POPLAR

Unlike in prior years, including in early 2025, markets for green Poplar are not assertively pursuing additional material. Instead, most concentration yards and secondary wood products manufacturers have enough Poplar to meet their short-term inventory goals. Some contacts describe #1C and #2A Poplar as readily available. Pricing information is unchanged from last week, allowing all the listings to stand. The kiln dried figures also hold steady. Poplar log exports in January were the strongest for any January since 2018, and shipments were strong in February and March as well, according to industry contacts.

WALNUT

Elevated Walnut log shipments to Vietnam limited green lumber production in the second half of 2025 and in early 2026. Supply shortages prompted steadily rising green prices, as yards scoured the region hoping to find enough material to fill large kiln dried order files. Availability is higher now. Recently reported prices are showing signs of downward bias, and the Fas&1f listings are reduced in all thicknesses. Supplies of kiln dried items are aligned with demand, which contacts describe as better for #2A than for #1C&Btr. Overall kiln dried sales have slowed but are still decent. The #2A&Btr figures in all thicknesses are reflective of observed activity.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

In minimal trading, transactions for Oak and Mixed Species framestock show few changes in pricing, allowing the ranges for each to stand.

There are scattered reports of stronger demand for hardwood cants, but most contacts describe markets for wooden packaging material as fair. Total demand is keeping cant production shipped to regular buyers at steady prices.

Crosstie production is low at present, with purchasing quotas strictly enforced. Yet the pace is adequate for buyers to meet their short- and long-term needs. Prices are steady following recent declines, resulting in no changes to the ranges.

Survey responses show demand for board road, mats, and timbers is unchanged at the end of March, matching February’s relatively slow pace. The board road listing and range stand pat in this edition.