Domestic and international demand for poplar has been so strong that summer has come and gone without the usual deterioration in prices.
Major Poplar markets in North America—particularly moulding/millwork manufacturers and distribution yards—will purchase more in the fall. Large shipments to China, Vietnam, Mexico and a host of other foreign destinations will keep poplar exports on a record-shattering pace. Poplar demand will remain strong into Q1 2013; prices will move up a bit more over the next two months and then level off for several months.
At present, supplies of most KD 4/4 Red Oak items are ample, with #1 Com abundant. However, the supply-demand balance is set to shift for one 4/4 Red Oak item after another during Q4.
Increasing moulding and millwork demand in the U.S., along with robust exports to China, will tighten upper-grade Red Oak supplies and nudge prices higher by mid-Nov. Flooring plants will absorb excess inventories of KD 4/4 #2 Com Red Oak, while domestic, Chinese and Mexican buyers do the same with #1 Com, firming prices by year-end.
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