Unsold Common Oak, Hard and Soft Maple, Cherry Depress Prices

Unsold Common Oak, Hard and Soft Maple, Cherry Depress PricesHardwood Publishing has released its updated Leading Hardwood Demand Indicator, which shows an increase from 126.4 in April to 139.6 in May almost entirely due to normal seasonal strengthening in key domestic and export markets (January 2013=100).

The expectation of slower exports drops the index back to 135.8 in June. Importantly, actual sales growth is Unsold Common Oak, Hard and Soft Maple, Cherry Depress Pricesexpected to lag index growth over the next several months because secondary wood products manufacturers in North America and abroad are overstocked with hardwood lumber.

The Leading Hardwood Demand Indicator forecasts future demand for U.S. hardwood lumber based on residential and commercial construction, import/export trends, inflation levels, and job markets.

Demand and prices are firmer for upper-grade lumber than for #1 Common and below in most hardwood species. Inventories of unsold Red Oak, White Oak, Hard Maple, Soft Maple and Cherry continue to build, especially in the commons.

Sales of industrial lumber products like pallet cants and railroad ties are generally strong. Many mills are producing more industrial items due to a lack of orders from flooring plants. Slightly improved sales of board road and crane mats are easing mill inventory buildups and taking some pressure off slower grade lumber sales.

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