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Appalachian Comments

GENERAL

Comments from July 24, 2026

This week’s conversations and survey comments were largely centered on the short- and long-term impacts of recent sawmill closures. Namely, contacts discussed how closures will impact the balance between supply and demand. Given the myriad headwinds the hardwood industry has faced since 2018, supply and demand reaching equilibrium might feel like a watershed moment.

That did not occur this week, however. More published prices fell than rose, and comments suggest stability remains elusive. According to a buyer for one wood products manufacturer, “Supply and demand seem to be in balance despite the low amount of lumber being produced.” However, another buyer said, “Lumber availability is still ample to oversupplied.”

It is too early to determine the overall impact of recent sawmill closures on the market. A long-awaited upcycle might emerge next week, next month, or next year. When capacity attrition does end and demand for hardwood lumber increases, even modestly, producers are concerned the industry might not be able to fully capitalize on the uptick before the next lull occurs.

On a more granular level, all secondary wood products manufacturers responding to surveys over the last three weeks described their lumber inventories as adequate. Meanwhile, reports about finished goods sales vary from sector to sector. Lumber sales are fair to moulding, millwork, and component producers but remain slow to the wood furniture sector. The pallet industry remains the busiest low-grade market.