Hardwood Demand Will Exceed Supply

Hardwood demand is expected to continue to outpace supply in the coming months with prices continuing to escalate.

George Barrett predicts in the Weekly Hardwood Review pricing report that firm to increasing price levels will continue in the coming months due to continuing inventory shor0ages. Lumber production increased only slightly during tle summer, he explains, making lumber inventories as shallow now uls anytime in the last year. Rain, snow and winter weather will exacerbate the situation. he advises lumber buyers.

Demand for hardwood continues to escalate with kitchen cabinet sales up l4%o duing the first six months o1 1992. Dimension manufacturers are reporting full order files and hardwood flooring shipments are up ll%o over 1991 levels, Barrett notes.

Despite housing starts ahead of last year, George A. Christie, F. W. Dodee economist, says, "The potential for-a one million unit rate of single family home building (in 1992) is realistic enough, but will be hard to sustain until the economy strengthens. Driving interest rates down is not enough, hecause refinancing existing mortgages has more appeal than taking on new debt."

While the overall demand for lumber has improved across major markets, the transition from a supply to a demand driven market nas- not occurred, Barrett reports. He estimates lumber production will fall slightly in the coming winter months as customary to push prices up for the next two quarters on many key items. How_ ever, with timber prices at record lev_ els timber omlers have an incentive to sell. Logs and timber should be available in most regions, making production increases possible.

"While the hardwood indusB may have its ups and downs, the outlook ii still positive as evidenced by the increased investments being made by many companies within our industry," Barrett concludes. "The biggest challenge remains gening a handle on raw material costs, as the increasing costbf logs is governing profitability for the sawmills to a greater extent than ever."

The Merchant Magazine

National Hardwood Day Dates

Oct.23, the Friday of National Forest Products Week, will be National Hardwood Day.

Sponsored by the National Hardwood Lumber Association, the observance will promote the use of hardwood lumber and the industrv with public service announcements. Sample press releases, radio and tv announcements and film script samples have been sent to members by Ernest J. Stebbins, executive manager, along with a letter urging them to contact local media eady in October to arrange for their use and present copies of the Forest Resource Fact Book to editors, news and program directors. National Hardwood Day publicity includes an inviation for the public to contact the association for a free copy of the book.

Export Ban In Washington

The Bush adminisration plans to ban all exports of logs harvested from state-owned Iands in Washington, announced Commerce Secretary Barbara Franklin during a visit to SeattleSnohomish Mill, Snohomish, Wa. The move is designed to "protect

October 1992 jobs in Washington state timber communities," said Rep. Rod Chandler' RWa., who joined her at the SePt. 18 rally.

In 1990 Bush signed a law imPosing a lNTo ban on exports of logs harvested from state land in Oregon, but setting the limit at 754o in Washington.

L-P Redwood Changes

Louisiana-Pacific has named Capital Lumber Co. as its distributor in eight western states for all redwood sales except for a few major home center accounts.

Based in Phoenix, Az., CaPital has branches in Northern and Southern California, New Mexico, Colorado and West Texas.

In a joint statement, Bob SimPson' L-P general manager, western division, and Capital Lumber president John Gaskin said the iurangement was a result of reduced redwood production by Louisiana-Pacific.

Lower timber harvest levels and log supply limitations have lowered L-P redwood production over 507o in the last five years.

Three

Killed in Palco Debarker

Investigations are continuing over how a debarking machine at Pacific Lumber Co., Scotia, Ca., suddenlY restarted, trapping inside and killing tbree workers.

A truck driver made the grislY find early the morning of SePr 9 when he noticed a lack of activity at Palco's hardwood chip Plant. The victims' believed to be the onlY emPloYees present during the night shift, aPparently were trying with chain saws

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