As flooring and other users buy, competition for low-grade lumber in the South will be quite intense this winter. California launches a lumber tax Jan. 1, another factor in pricing, says Hardwood Review in this regional report summary.
Lumber shortages for residential flooring manufacturers. Plus, hardwood lumber sales remain sluggish in a seasonal summer slowdown but are expected to pick up in the fall.
Red oak and white oak supply could outstrip demand. White oak exports to Italy, Spain and Portugal fell a combined 25 percent year-on-year through April; while German and British imports were up 14 percent.
Red oak and white oak hardwood lumber prices will remain relatively stable with red oak firming during first half of forecast window and softening in second. Chinese white oak demand will offset declines in European demand.