On May 22, Hardwood Publishing released its updated Leading Hardwood Demand Indicator (LHDI), a forecast of future demand for U.S. hardwood lumber based on residential and commercial construction, import/export trends, inflation levels, and job markets. The LHDI declines from 140.7 in May to 137.2 in June and 134.7 in July (January 2013=100), as seasonally slower exports outweigh hardwood demand increases associated with improved residential and commercial construction. Sharply higher U.S. imports of wood furniture, flooring and cabinets in March—possibly a temporary spike following the resolution of the West Coast port strike—also detract from the index in June and July. Increased imports of secondary wood products typically result in reduced hardwood shipments to domestic manufacturers.

Hardwood Publishing’s forward-looking price indices for key hardwood species show sharp declines in Red Oak and White Oak prices over the next 30 days along with modest reductions in Poplar, Hard Maple and Soft Maple prices. Broader price indices for all three eastern hardwood producing regions also show 30-day declines, as do indices for market baskets of hardwood items purchased by the cabinet, flooring and export sectors.