Appalachian Comments

RED OAK

Sawmills are minimizing production of this species, to the extent they can. And when they cannot avoid it, mills are cutting more ties and other salable industrial items from Red Oak logs to minimize grade lumber output. Despite these efforts, green Red Oak availability is exceeding the market’s needs. Prices continue to respond, with the listings down $15 for 4/4 through 6/4 Fas&1f; $25 for 4/4 through 8/4 #1C; and $15 for all #2A&3A and #2A Alone items. Markets conditions for kiln dried Red Oak are highly unfavorable as well. Many exporters have ongoing business in China, but often at distressed prices. Domestic distributors and end users are being offered more Red Oak than they need. To better reflect current information, all of the kiln dried listings and most range numbers are lowered.

WHITE OAK

Key export markets for White Oak are not performing well, including China, Vietnam, the UK, and Germany. In Europe, high inflation and concerns about fuel shortages this winter are disrupting economic activity, including the hardwood lumber trade. At the same time, secondary wood products manufacturers in the Far East are reducing White Oak purchases due to slow finished goods sales to North America and Europe. Demand is also slow from end users and distributors in the US. Prices continue to tumble. The green listings fall $60 for Fas&1f, $30 for #1C, and $15 for #2A&3A in all published thicknesses. The WHND 4/4 and 5/4 figures are reduced $30 for Fas&1f and $15 for #1C and sound wormy. Also moving lower are the kiln dried 4/4 and 5/4 #2A&Btr, 6/4 Fas, and 8/4 Fas listings and ranges.

WALNUT

Market conditions for this species rapidly deteriorated in recent months and show no signs of improvement to this point. Much of the loss in momentum stemmed from unusually high Walnut production the first half of 2022 coupled with subsequent contractions in demand, especially from overseas customers. Sawmills can more readily curb production of Walnut than most species because logs can be stored longer before degrade occurs. Many are doing just that. Even so, supply and demand remain imbalanced, which is evident in lower reported prices. Information takes down the green listings $85 for Fas&1f, $35 for #1C, and $25 for #2A in all thicknesses. For kiln dried Walnut, the 4/4 and 5/4 #2A&Btr figures decline, as do the listings and low end range numbers for 6/4 and 8/4 Fas.