This past January we began this monthly blog post with some detailed insight into our region’s hardwood timber and lumber markets. We talked about the basics of how demand fluctuates over time as consumer tastes change, and we discussed to some degree how log and lumber prices typically change seasonally as well based on access conditions and weather.
We also mentioned that our forests contain some of the very best quality hardwood timber in the world, with species such as black cherry, sugar maple, red oak, white ash and soft maple sought after both internationally and domestically. Housing starts and remodeling demand drive prices of lumber (and consequently standing timber) domestically, and international demand for the same reasons contributes significantly as well, with the countries of China, Canada, the European Union, Mexico, Japan and Korea leading our export markets.
Going forward, our plan is to provide a more concise monthly presentation of market conditions, and if and when any of the above-describe market foundations change, we will certainly make note of the situation.
General market comments and trends since last month:
- Log supplies are on an upward trend
- Sawmill production is also trending upward
- Good quality (“grade”) lumber supply is being absorbed well by demand
- Low quality (tie, pallet, cant, etc.) lumber demand has slowed
- Export markets have been strong (particularly from Southeast Asia)
Black cherry; demand remains spotty; stumpage prices somewhat steady; lumber prices -1%
Sugar maple; demand steady; stumpage prices steady; lumber prices steady
Red maple; demand increasing; stumpage prices trending up; lumber prices +2%
White ash; demand slightly down; stumpage prices trending down; lumber prices steady
Soft maple; demand increasing; stumpage prices trending upward; lumber prices steady
Estimated Annual Sawmill Production Rate Trend Eastern US Hardwoods
The following bar chart illustrates the change in production over the last year for sawmills producing eastern US hardwoods. It is evident that production is on a slight upward trend over the last several months.
