Southern Comments

GENERAL

Comments from Mar. 21, 2025

HMR’s estimates on Eastern US hardwood production in February show mill output increased 9.2% over January to an annual rate of 4.3 billion board feet (BBF). The gain in volume is despite February having two fewer working days than January. However, year to date production at the end of February was 21.8% lower than that for the January through February 2024 period. In the Southern region, data show that mill output increased 16.0% in February over the previous month despite poor logging conditions. Even then, production levels remain historically low, and supplies are not meeting demand for many species, grades, and thicknesses.

SOFT MAPLE

RED OAK

Even though green lumber production rose in February, mill output remains historically low. Developing supplies are not satisfying demand from secondary manufacturers or concentration yards. Reported prices are rising, lifting the 4/4 through 8/4 #1C&Btr listings, as well as the 4/4 through 5/4 #2A&3A figures. Domestic and international kiln dried markets are performing well. True demand has not significantly increased, but end users’ inventories have declined, prompting buyers to step up purchasing, now. Transactions point out higher pricing for 4/4 #2A&Btr and 5/4 #2A, raising the listings and noted range figures.

POPLAR

Poplar markets continue to perform well amid extremely low production. Competition for limited supplies is driving prices higher for green stocks. The 4/4 through 8/4 #1C&Btr listings are raised. Kiln dried inventories are contracted, also, and demand is solid. Transactions point out sufficiently elevated pricing to increase the 4/4 through 8/4 Fas, 4/4 and 5/4 #1C, and 4/4 #2A listings and noted ranges.

FRAMESTOCK, CANTS, TIES, & BOARD ROAD

Well air dried framestock inventories have declined because of poor drying conditions this winter. The decrease in available supplies has eased prices pressures but has done little to energize sales/purchasing activity. No changes are required to the Oak or Mixed Species ranges.

Markets for hardwood pallet cants have improved, due to low pine and hardwood sawmill production. Also, many wooden pallet and container manufacturers are concerned about mill output over the next few weeks and are working to bolster inventories. Information raises the cant listing.

Conversations with tie producers reveal a mixed bag of information. Some suppliers have open orders for all of the ties they can produce, while other vendors say that tie orders have declined. Reported prices vary accordingly. However, the 7x9 crosstie ranges are reflective of collected pricing data.

Board road and mat timber producers are expecting demand for these items to pick up in the next few weeks. There is optimism that expressed policies by the current administration could push demand higher in the coming months. Current business shows pricing centered on the listing or within the range.