Appalachian Comments

RED OAK

Reports suggest this species is gaining a bit more traction in domestic markets where it has long been out of favor, such as the cabinet sector. Similarly, Red Oak is attracting more interest in Europe as a substitute for White Oak. These are isolated reports, so far, but they bear watching. Whatever momentum Red Oak might be gaining in those markets is being overshadowed by weaker business in China. While surveys and transaction documents include some large block sales of kiln dried 4/4 Fas and 4/4 #1C Red Oak at substantial discounts, most information shows modest decline. The 4/4 through 6/4 #1C and 4/4 #2A listings and noted ranges are lowered accordingly. The combination of low sawmill production and good demand for the common grades from flooring plants is mitigating the impact of reduced green Red Oak purchasing by concentration yards. Only the 4/4 Fas&1f listings register decreases this week.

WHITE OAK

Markets for green White Oak appear to be stronger than they actually are. Mills are readily moving green #3A&Btr, but that is mainly due to low production, not high demand. With the supply imbalance, prices are rising. The WHAD 4/4 through 8/4 #1C&Btr listings notch gains, as do all the WHND figures. Demand for Fas White Oak is holding up fairly well in Europe. However, that is not the case for #1C and #2A shipments to China and Vietnam. Prices vary accordingly, though the only changes warranted in this issue are increases for 8/4 Fas and decreases for 6/4 #1C.

WALNUT

Sagging exports to the Far East – particularly China – are having a significant impact on overall demand for Walnut. Kiln dried prices have become more fluid amid heavy competition for Chinese orders. Concentration yards with export programs are being much more conservative with green lumber purchases and purchase prices. Supplies of most green and kiln dried items now exceed demand. The green 4/4 through 8/4 #1C&Btr, 4/4 #2A, and 5/4 #2A listings retreat, as do the kiln dried 4/4 #2A&Btr, 5/4 through 8/4 Fas, and 5/4 #1C figures.