Red Oak prices are significantly impacted by the sharp decline in Chinese demand that began in June has continued into August, say editors of Hardwood Review. Coastal Lumber's closure hasn't changed China's buying patterns yet.

Sawmill capacity will remain constrained by bankruptcies and shutdowns, so any increase in demand will move hardwood prices higher. We’ll see the first evidence of this in late-September or October, as Asian markets begin to re-stock ahead of the New Year, says editors of Hardwood Review.

Business conditions will be difficult for hardwood sawmills this summer, and many in the industry are predicting a wave of permanent mill closures, say the editors of Hardwood Review in their weekly lumber pricing trends report.

Cherry will be plentiful as remodeling slackens, says editors at Hardwood Review, while a downtick in China's demand for oak will make that species more plentiful by the season's end. Poplar demand will hold up better, as demand from Viet Nam, Italy and China slows.

The economic recovery will eventually pick up steam to the benefit of North American hardwood lumber producers and secondary wood products manufacturers, say editors of Hardwood Review …but probably not this summer. Most companies will have to maintain the “hunker down and ride it out” mentality a while longer.

Almost 59% of North American hardwood lumber exporters surveyed last month are exporting a higher percentage of their production in 2011 than in 2010, with only 7% exporting a lower percentage

Some wood component buyers have turned back to domestic suppliers because their requirements are smaller and higher ocean shipping costs have made domestic sources competitive again, say the editors of Hardwood Review.

Loggers curtailed activity in some areas and completely suspended operations in others, report editors of Hardwood Review, as hardwood forests across much of the eastern U.S. and Canada were wet, and in some cases, submerged.

Following is an overview of market conditions for several key North American hardwood lumber species from the editor's of Hardwood Review.

Sawmill inventories fall as severe weather drive loggers from the woods, reprot editors of hardwood review. This could bump lumber pricing upward.