Appalachian Comments

Comments from 4/26/2024

In last week’s Appalachian comments, we noted that five times as many Appalachian sawmill operators reported having lower log decks than those reporting higher log decks compared to one month earlier. That ratio climbed to 7-to-1 in this week’s survey. In many areas, loggers are having considerable difficulty getting logs out of the woods. Amid these circumstances, sawmill production remains relatively low. Supply is either lagging demand or is barely meeting demand for several species, including White Oak, Walnut, Ash, Hard Maple, and Soft Maple. In contrast, Basswood, Beech, and Hickory are readily available, and all are selling slowly. Markets for kiln dried lumber are primarily supply driven, although the last two weeks have brought scattered reports of increased consumption by some end users, mostly in the cabinet and moulding sectors.

ASH

Sawmill contacts report favorable market conditions for developing green Ash lumber production, as do concentration yard contacts about kiln dried business in China. Indeed, demand from China remains the largest driver of Ash sales, whether for logs or lumber. Meanwhile, distributors and end users in the US are controlling purchases amid lackluster domestic sales of kiln dried Ash lumber and finished goods. Transactions show few changes in either green or kiln dried prices from last week; only the green 5/4 and 6/4 #1C listings warrant increases at this time.

BASSWOOD

Sellers are currently using words like “anemic” and “poor” to describe Basswood demand. Business between buyers and sellers with established relationships is slow, and open market activity is weaker still. Lower reported prices drive decreases to all of the green listings in this issue. All the kiln dried figures are flat at previous levels.

BEECH

CHERRY

Interest in this species is low from virtually every world market except China. Even so, solid demand from China, along with modest domestic consumption, is sufficient to absorb production of most grades and thicknesses. Kiln dried prices have leveled off of late, with only the Appalachian 4/4 Fas figures posting gains this week. However, green prices are now showing an upward bias that is entirely supply driven. The 5/4 through 8/4 Fas&1f and 4/4 through 8/4 #1C listings advance in both producing areas, as do the Appalachian 4/4 Fas&1f figures.

HICKORY

Demand for green Hickory grade lumber has contracted faster than production; mills are struggling to sell all they produce. Orders are also slowing from crosstie markets – another important outlet for Hickory. Reported prices are in broad ranges, especially for Fas&1f packaged and sold separately from other grades. However, prior adjustments have all the listings in order for now. Likewise, the kiln dried 4/4 #2A&Btr figures accurately reflect prices seen in the marketplace.

HARD MAPLE

Prices for green and kiln dried Hard Maple have gained considerable ground in recent months due to very low production. Unlike most years, Hard Maple cuts did not increase much in the latter stages of this past winter. What is more, reports suggest that higher demand is also contributing to tight supplies and price appreciation. This is especially true for the upper grades but also for #1C to a lesser extent. The listings climb for all green #1C&Btr items in both color classifications except #1&2 White 6/4 and 8/4 #1C. Information also bumps up the kiln dried #1&2 White and Unselected 4/4 #1C&Btr and 6/4 Fas figures.

SOFT MAPLE

This week brought no change in market direction for upper grade Soft Maple, which has been moving well for some time. Prices are firm to somewhat higher. The green 5/4 through 8/4 Fas&1f listings are raised for both color designations, and the kiln dried Sap&Btr 6/4 Fas listings and ranges also advance. Markets for green and kiln dried Sap&Btr #1C Soft Maple are showing a bit more life, but prices are consistent with last week. Demand is slow for #2A and all grades of brown Soft Maple.

#2&3A OAK

Demand for #2A&3A Oak has slowed but more so for Red Oak than White Oak. Companies in both the residential wood and truck trailer flooring sectors are implementing tighter controls on inbound shipments. Purchasing and sales transactions for the second half of April include a mix of prices, though most are consistent with prices seen in the first half of the month. No changes are warranted to the #2A&3A listings this week.

RED OAK

Concentration yards are showing steady interest in this species, but that is not the case for flooring plants, which are controlling purchase quantities of the common grades. Despite these circumstances, prices did not change much this week, mainly because sawmill production and green lumber availability remain relatively low. The 4/4 through 8/4 #3A&Btr listings are unchanged. Comments about kiln dried #1C&Btr Red Oak business are favorable. Combined demand from domestic and international markets is keeping supplies manageable and prices firm. The 4/4 Fas listings and high end range numbers notch gains. While kiln dried #2A Red Oak is not moving particularly well, prices are showing little evidence of erosion.

WHITE OAK

Drying operations are readily moving developing #1C&Btr White Oak, and most indicate #2A business is adequate. Still, reported prices did not climb as broadly or sharply as in past weeks. Only the 4/4 #1C&Btr and 8/4 Fas listings and noted range figures advance in this issue. Strong demand from barrel stave and veneer producers has consistently constrained high grade and thick stock White Oak lumber production for some time. However, in some areas, reports indicate pressure is easing from those markets, resulting in more lumber production and easing price pressures. While such reports are exceptions, green prices did not change much this week, allowing all of the listings to stand.

POPLAR

This species is selling at a decent pace domestically, and shipments to Vietnam have improved over time. In addition, reports point out relatively low Poplar log inventories at some peeler plants. Despite these circumstances, markets for Poplar grade lumber are adequately supplied and highly price competitive. Although prices for many grades and thicknesses are soft, only the green 4/4 through 6/4 Fas&1f listings warrant reductions for now.

WALNUT

Demand for kiln dried Walnut is good in the US and China, and most smaller markets are also performing well. Contacts indicate sales of all 4/4 Fas items and proprietary sorts of 5/4 through 8/4 Fas are especially brisk. The listings and noted ranges are raised for 4/4 through 8/4 Fas and 4/4 #1C. Sawmills are easily moving developing green Walnut production. Reported prices are mostly consistent with the published listings.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

Markets for solid hardwood framestock are weak, including both Oak and Mixed Species material. The vast majority of reported prices are for repeat business and are little changed from past weeks.

Some pallet manufacturers have become more assertive with cant purchases the last couple of weeks. This is the result of thinning on hand supplies more than improved finished goods sales. Pricing information necessitates a modest increase to the cant listing, with the low and high sides of the range unchanged.

Crosstie demand is far less robust than earlier in the year. Buyers have reached or are nearing expanded inventory goals and are implementing shipping quotas with many suppliers. Prices for 7x9 crossties have slipped in recent weeks, but prior decreases have both of the ranges in order.

Board road business has picked up a bit this spring but is still not very good. In limited trading, prices are holding steady.

International Comments

GENERAL

Please see our graphs.