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Canada:The Regional Differences In Timber Market
2002.09.06


Canada:The Regional Differences In Timber Market

The demand for logs and lumber in Eastern Canada - notably in Quebec - is fairly good, but it has become more difficult to locate trucks to deliver the wood. In the Northern United States, items which sell well include green Red Oak, mainly the common grades used by flooring plants. On the other hand, demand for Hard Maple is still sluggish. Exports of a few items such as White Oak and common Basswood improved a bit. The lumber supply in the Appalachian region is relatively tight, particularly in Kentucky and Tennessee. Nevertheless, prices did not rise as the demand for lumber was also weak, with the exception of a few sought-after items such as common Cherry, Hard Maple and Oak. Much of the demand stems from flooring plants. Hickory has gained increased popularity among kitchen cabinet manufacturers. In regards to foreign sales, only Poplar deserves some mention. The long streak of rainy weather in the South (mainly in Mississippi and Alabama) is over and normal logging has now resumed. Nevertheless, kiln-dried lumber production is still low and inventories are below normal for this time of year. Cash-flow problems at many sawmills are further restraining production. The low lumber supply coincides with a modest revival in demand. Demand for low-grade lumber is particularly strong, emanating mainly from flooring plants (strip-flooring and truck-flooring) and railroads.

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