Southern Comments

GENERAL

Comments from April 10, 2026.

As spring takes hold round the region, the biggest question for the Southern hardwood market remains the same; what to do with low-grade Oak? Published prices for green #2A&3A Red Oak and #2A White Oak reached the lowest they have been for a year this week, while #3A White Oak has fallen to its lowest figure in almost three years.

With the crosstie market in the midst of a downturn and combined demand from the residential and truck trailer flooring sectors flat, the answer to the low-grade Oak question is unlikely to come from the places the industry has most often turned to in the past. Several contacts told HMR/Fastmarkets that they are resigned to the situation lasting until the summer, at least.

ASH

Despite early spring temperature fluctuations and rainfall in some areas, logging of lowland species like Ash continued steadily over the last week. Production is not matched by demand, however. The listings decline for all green 5/4, 6/4, and 8/4 #2A&Btr items. Thicker stocks see the most pronounced reductions. On the kiln dried side, the only changes are the second straight increases to the list prices for 4/4 Fas.

BEECH

COTTONWOOD

PECAN & HICKORY

Reported prices do not lead to any changes to the published numbers for Pecan & Hickory. Demand and production are evenly balanced in the South, keeping prices in check.

MIXED HARDWOODS

SAP GUM

SOFT MAPLE

After a bump in interest for green Soft Maple in the Southern region last month, interest in this species has moderated in April. Little trading was reported by those surveyed over the last week. Sources indicate supply and demand are in balance.

#2A&3A OAK

The last few weeks saw a reprieve from downward pressure on green low-grade Oak prices in the South, but that stretch is broken this week with decreases for 4/4 through 6/4 #2A&3A Red Oak and White Oak. The listings for #2A&3A Red Oak and #2A White Oak are now at their lowest in around a year, while #3A White Oak is at the lowest level since May 2023. Pervasive crosstie quotas and struggling demand for pallet cants have left mills with little choice but to keep sawing #2A&3A from their Oak logs. “It’s like a perfect storm,” one Southern contact said.

RED OAK

Alongside the decreases to green #2A&3A, there are drops to all Fas&1f listings between 5/4 and 8/4. Southern area mills report no issues with log supply, and overall demand has cooled for thicker stocks this week. On the kiln dried side, reported prices drive decreases to the lower ends of the ranges for 4/4 Fas as well as increases to both ends of the 5/4 #1C ranges.

WHITE OAK

White Oak mirrored Red Oak this week, with decreases in published prices for green 4/4 through 6/4 #2A&3A. Alongside those drops are reductions for 4/4 #1C&Btr. The big story on the kiln dried side is retreating prices for 4/4 Fas. Improved interest from some markets encouraged contacts recently, but reported prices show a clear downward trend across the board, necessitating notable drops for the list prices and both ends of the ranges. Downward movement is due to a combination of slightly lower international demand and increased White Oak availability across all regions. Decreases to the lower ends of the ranges for 4/4 #1C are the only other changes for kiln dried White Oak in this issue.

POPLAR

The market for green Poplar in the Southern region is well-balanced, with production and demand meeting each other comfortably. Contacts report more price movement for kiln dried Poplar, particularly for thick stock. Reported prices necessitate increases to the lower ends of the ranges for 6/4 Fas and upward movement for the list prices and upper ends of the ranges for 8/4 #1C. Decreases to the listings and lower ends of the ranges for 4/4 Fas constitute the only downward movement in published prices for any Southern Poplar this week.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

Southern industrials enjoyed a quiet week from a pricing perspective. While crosstie quotas continue to have an impact on published prices for low-grade Oak, 7x9 crosstie markets have stabilized on both sides of the Mississippi. Several tie contacts tell HMR/Fastmarkets they do not expect substantial price changes anytime soon.

Prices remain flat for framestock and board road. Markets for board road are reportedly holding up reasonably well. While demand for hardwood pallet cants is not blowing down any doors in the South at the moment, reported prices show a flat market, price-wise, this week.

Appalachian Comments

#2&3A OAK

Sales of #2A&3A Red Oak to residential flooring plants have picked up in response to seasonally strong demand and consumer preferences for Red Oak over White Oak. Sawmill production has also increased, making flooring-grade Oak readily available. Prices continue to respond to the combination of supply and demand pressures. To better reflect prices in observed transactions, the green 4/4 #3A Red Oak listing is reduced. No changes are warranted to the #2A Alone listing or the listings for #2A&3A Red Oak in the thicker stocks. Information holds the listings steady for 4/4 #2A&3A White Oak, despite the demand shift away from this species in the residential flooring sector. The listings for 5/4 and 6/4 #2A&3A are similarly unchanged.

RED OAK

Though residential flooring plants are absorbing sizeable quantities of 4/4 #2A&3A Red Oak and some #1C as well, producer order files are not ample enough to move full production of certain items. Lower reported prices are evident, resulting in declines to the listings for green 4/4 #1C and #3A. The listings for 5/4 through 8/4 Fas&1f also edge lower. This week brought reports of somewhat slower demand for kiln dried Red Oak, caused partly by the war in Iran that has elevated shipping risks and costs in the region. To that end, an export sales manager said, “Red Oak exports to MENA have slowed or are delayed due to the war. Other than that, Red Oak is shipping out every day to other markets.” Chinese purchasing of this species remains decent. Meanwhile, domestic activity for Red Oak is busier but is not robust. Information raises the listings for 6/4 Fas, but all the other kiln dried figures are unchanged.

WHITE OAK

Producers have decent order files for kiln dried nine-foot and longer #1C&Btr White Oak. Sales of shorter stock remain slow, with price discounting doing little to move the sales needle in a positive direction. Random width and length #1C is the weakest it has been for a while. Lower reported numbers continue to come in, prompting this week’s reductions to the 4/4 #1C listings and high-end ranges. Some contacts are lowering Fas prices to generate sales, but no changes to the Fas figures are warranted in this edition. Prior reductions on the green side have all the listings in check.

Northern Comments

GENERAL

Comments from April 10, 2026.

Concerns about higher freight costs remain the hottest topic in the Northern hardwood lumber market. Contacts have told HMR/Fastmarkets that overland freight costs have risen by at least $100 to $250 per load, depending on the route. This could start eating into demand for cheaper low-grade lumber, because freight is a larger percentage of the total cost of those shipments, compared with upper-grade lumber.

The average US on-highway diesel fuel price was at $5.643/gallon on April 6, according to the US Energy Information Administration, up from $3.639/gallon one year ago and $3.809/gallon at the end of February. While many analysts are certain prices will drop once the war in Iran winds down, businesses and consumers in the US and throughout the world are being heavily impacted in the meantime.

Logging conditions are also something to watch, as spring rains and snowmelt are beginning to cause disruptions. One Michigan sawmill operator said there has been some flooding in low-lying areas, which is severely hindering operations. “Mud season” is a regular annual occurrence, but its duration and severity vary from year to year. If this sort of problem is widespread and sustained, log availability could become tighter, leading to upward pressure on prices, particularly with sawmill production hovering near a historic low.

ASH

Northern companies that export to China are enjoying brisk sales of #1C and #2A Ash to that market. Shipments are also decent to Vietnam. Reported prices for kiln dried 4/4 #1C are firm but well represented by the listings and ranges, whereas the 4/4 #2A figures warrant increases. Combined domestic and international demand is sufficient to keep Fas inventories in check and prices steady. Green Ash production is well balanced with the market’s needs, with all the listings holding at previous levels.

ASPEN

Comments about market conditions for this species are mixed but lean in a favorable direction. To be clear, limited production is the primary driver of the auspicious reporting now prevalent among those participating in Aspen markets. Aspen log supplies are limited, overall, including many mills that are altogether avoiding the species. Demand is relatively low from a historic point of view, and contacts consistently indicate markets would not absorb a significant uptick in output. Reported green prices lift the 4/4 #1C listing and keep the other listings intact. Previous adjustments have all the kiln dried figures in order.

BASSWOOD

Secondary manufacturers in the region are not being particularly assertive with green Basswood purchases. Most have ample inventories, and some are contending with sluggish finished goods sales. At the same time, concentration yards are showing steady interest in 4/4, 5/4, and 9/4 stocks, which are selling well on the kiln dried side to certain domestic and international markets. Green prices gathered this week are consistent with the listings. Meanwhile, the kiln dried 4/4 #2A listings and low ends of the ranges rise, along with the noted range numbers for 5/4 Fas, 8/4 #1C, 9/4 #1C, and 9/4 #2A.

BEECH

BIRCH

Broadly speaking, this is one of the slowest-moving species for Northern sawmills and yards. Sellers report the most difficulty finding homes for brown #1C and Unselected #2A and #3A. That said, certain items are garnering interest, such as brown Fas and Sap&Btr #1C. Reported green prices have not changed much in recent weeks; all of the listings stand pat in this issue. Kiln dried prices observed in the marketplace are in very wide ranges due to uneven demand for shorter compared to longer lengths and the prevalence of color sorting. For now, at least, the published 4/4 #2A&Btr figures are in order.

NORTHERN SOFT GREY ELM

HARD MAPLE

Demand for Hard Maple in the Northern region is largely steady this week. Recently, markets for the species have been heavily supplied with winter-cut stock. However, stronger seasonal demand has limited downward pressure on prices. Listings for most items, both green and kiln dried, have not changed much since the start of the year. One Northern sawmill operator said that #1C and #2A have been the best-moving Hard Maple grades, whereas uppers are moving separately to buyers seeking to balance their inventories. Pricing received this week necessitates a slight bump to the green #1&2 White 4/4 #2A listing and increases to the listings and ranges for kiln dried #1&2 White 5/4 Fas.

SOFT MAPLE

The Soft Maple market has been highly grade-specific. One sales contact told HMR/Fastmarkets that #1C&Btr items are moving best for Sap&Btr stock, while #2A has been “a bit of a dog” in Sap&Btr. This has been borne out in green pricing, as most Sap&Btr #1C&Btr listings rose during the first quarter of 2026, maintaining the upward trend that has persisted since the end of 2023. Conversely, most #2A listings stayed soft to start this year and have been in a bear market since the end of 2023. Kiln dried Sap&Btr pricing received this week necessitates increases to the low ends of the 5/4 Fas ranges and high ends of the 4/4 #2A ranges.

RED OAK

Northern Red Oak lumber prices held firm this week. Prices for the species have mostly been rising since the start of the year, with the listings for some items currently at their highest levels in nearly four years. Consistent demand from Southeast Asia and Europe as well as steady domestic demand have tightened kiln dried inventories. A Northern sawmiller reported the strongest demand is for #1C&Btr items, but everything is “moving right along.” The market for #2A&3A Red Oak was described as “relatively stable” by one flooring manufacturer, though he is worried about rising freight costs. The listings and low ends of the ranges for kiln dried 6/4 Fas edge up in this issue.

WHITE OAK

The Northern White Oak lumber market has been oversupplied throughout this year, as more logs have been sawn into lumber rather than staves over the past 18 months. Consequently, published prices for most items—both green and kiln dried—have trended downward, despite contacts regularly reporting decent export demand. All the green listings are unchanged this week, as are the kiln dried #1C and #2A figures. Meanwhile, information received warrants decreases to the listings and ranges for kiln dried 4/4 Fas.

PALLET LUMBER, CANTS, TIES, & BOARD ROAD

Wood pallet manufacturers in the Upper Midwest are in the market for steady to slightly larger volumes of pallet cants and lumber. In parts of the region, supplies are barely keeping pace with demand. Pallet lumber prices have shown little movement this week, allowing the listings and ranges to stand. Last week’s increases have the cant listing and range in order.

Sawmills have lowered crosstie output alongside the market’s diminished needs. As such, supplies are adequate but are not overwhelming demand. The 7x9 crosstie price range accurately reflects current data.

Board road demand often seasonally increases in the spring and summer. No seasonal bump is yet evident, according to companies operating in this arena. Prices are flat in limited trading.

Oak Strip Flooring Comments

General

Comments from April 10, 2026.

Sales of new US single-family homes dipped sharply (-17.6%) in January 2026 from December 2025 to a seasonally adjusted annualized rate of 587,000 homes, with each region posting declines. New home sales were also 11.3% below the January 2025 rate of 662,000 units. The seasonally adjusted estimate of for-sale inventory at the end of January 2026 was 476,000 units—a 9.7 months’ supply at the January rate of sales.

The average sales price of new homes sold in January was $499,500, down $31,400 (5.9%) from December. The fractional increase in mortgage rates in the second half of January may have influenced slower sales. However, it is more likely that winter storms played a bigger role, considering January’s average new home price was the lowest since June 2025. Winter storms tend to disrupt sales in the Northeast and Midwest but are less likely to do so in the South. Still, sales in the South fell 8.1% in January from December as winter storm warnings, watches, and advisories reached the US-Mexico border.

The distribution of new home sales based on price has been fairly consistent, with homes costing $300,000 to $499,999 accounting for 47% of total homes sold in January and maintaining the same share from a year ago. If the slight increase in mortgage rates in January was the main reason for the decline in January new home sales, a shift toward lower-priced homes would have been plausible. Instead, the 19% share of total new homes sold under the $300,000 price threshold in January was unchanged from December and was four percentage points below the 23% share in September, when mortgage rates were higher.

While the monthly new residential sales report for January showed various month-over-month declines—and some media headlines amplified the declines—it could be more of a one-off based on the severity of winter storms than indicative of a big downturn. Forthcoming data over the next few months will clarify this.

Oak strip flooring sales activity increased in March, and nearly all changes to the price listings and ranges were increases. The only change this week lifts the listing for Southern 2¼” No. 2Com Red Oak. Several industry sales contacts now identify Sel&Btr White Oak as their slowest seller.

International Comments

GENERAL

Please see our graphs.