There is no doubt that 2017 was a very healthy year for hardwood demand, showing significant increases from overseas customers, as well as a solid and somewhat consistent domestic demand. Several records in exports were shattered (see past blog posts), and experts seem to think this momentum will carry well into 2018 – which is great news to woodlot and timberland owners in our operating areas!
Lumber prices for our major (by value) species have all shown heavy demand, and most have seen a consistent upward trend in price throughout 2017 and certainly coming into 2018 (see chart below). Ash has been and still is one of the main species of interest, as the desire to harvest good quality ash before the emerald ash borer destroys the resource has been met with a very robust interest for the species by both international and domestic mills, keeping prices healthy and continuing to rise. Early reports are that all grades of ash will continue to be in strong demand, keeping prices high until the market finds a suitable substitute for this species. Black cherry has found its way back to the spotlight again, now considered by many as one of the most desired hardwood species sought after by export markets. China and other Asian countries continue to seek both logs and lumber, as do other countries, and the domestic demand has improved some as well. Heard on the street is that “cherry log exports will remain strong in 2018, limiting lumber production, and driving lumber prices even higher until Chinese interest wanes, which isn’t likely anytime soon” (Hardwood Weekly Review, March 9, 2018, Vol. 33, Issue 25, page 17).
Hard maple continues to see strong interest, especially green lumber (not kiln-dried), and reports are that there has been a specific increase in demand from cabinet manufacturers. Like many other species, the very strong export markets (especially China and Canada in the case of hard maple) are slated to keep prices strong going well into the summer months. Soft maple has seen a leveling out at the beginning of this year, and recently prices have fallen a bit, mainly because it has reached somewhat remarkable levels. Continuing trends for this species will be tied in largely to Asian export demand during the upcoming spring months. Red oak has been one of the steadiest and strongest species of all, setting record export levels in volume and dollars this past year, and demand – both international and domestic – doesn’t seem to be waning into 2018. Talk is that production will be set so as not to flood the market place, keeping prices high and possibly climbing into the summer months.
The following chart illustrates the trends of lumber prices by species since the beginning of 2018, and are representative of timber in the Appalachian Regions of the US (data source: Hardwood Weekly Review, George Barrett, Editor, various issues).
FORECON has seen a continued strong and increasing demand for hardwood stumpage in our operating areas. Not only are we receiving great results for our clients through competitive bidding, but the number of bid participants is high, indicating a healthy marketplace. If you are inclined to sell any of your timber resource, now may be the perfect time to consider doing so. Don’t hesitate to contact any of our offices for advice on selling your timber, and have one of our foresters take a walk through your woods to give you a good overview to help determine your next steps in managing them.