Hardwood price increases expected to continue but also to ease during the summer months as hardwood exports to the Pacific Rim increases. U.S. imports of substitute temperate hardwoods will also rise.
North American hardwood lumber exports were quite strong in January. Chinese and Vietnamese demand was quite high despite the approach of the Chinese New Year and Tet holidays.
With hard maple demands increasing from cabinet and wood component plants,sawmills are delaying those cuts in favor of red oak due to the cold weather across the northern U.S. and Canada. And soft maple shipments tick up.
As Oak and Maple prices remain high, European Beech and Russian/Chinese Birch imports will grow. But supply chains still favor North American sourcing for domestic cabinetry and other wood products manufacture.
Favorable trends in jobs markets, low core inflation and expectations of seasonal rebounds in home building and lumber exports pushed the Weekly Hardwood Review Leading Hardwood Demand Indicator (LHDI) for February up to 118.8.
Lumber prices are taking a break from their overheated pace, as home construction slows. But strong exports could mean hardwood prices rise more slowly rather than fall.
Worldwide demand for North American hardwoods climbed faster than supply in October, causing lumber prices to surge. Chinese buyers in the U.S. to secure wood supplies find exporters unwilling to lock in prices.