The Softwood Forest Products Buyer - March/April 2024

Midwest Business Trends
West Coast Business Trends
By Paul Miller Jr.
Vice President
Throughout the Midwest region lumber suppliers noted
that their sales were doing well and that their markets were
active, at the time of this writing.
In South Dakota, a lumber spokesman said, “Our
markets are active right now. I think that this is due to
the warming temperatures after it being so cold for a few
weeks.” He also said that they are doing better than they
were six months ago.
His company offers Ponderosa Pine boards. “All of our boards are 3/4 and 1
inch thick and we carry those in grades Nos. 2, 3 and 4 Common,” he added.
He sells to distribution yards and mentioned that they have said their sales are
starting to pick up and it has reflected in their orders.
“Right now I think that everyone is optimistic,” he stated. “As we get further
into the year people are getting used to the interest rates being at six to seven
percentage points instead of two to three, and so we will continue to see better
business and more activity the more that this sinks in.”
Bert and Bud Vaagen founded Vaagen
Brothers lumber in the early 1950’s.
Today, the company continues as a
closely held corporation owned by
members of the Vaagen family. This
continuity of management, vision, and
leadership has helped guide the
company for more than half a century.
Creating a culture of innovation,
integrity, and cooperation that’s
fueled Vaagen’s advancement, evolution
and growth over the years.
Vaagen Bros. Lumber
565 W. 5TH Ave
Colville, Wa 99114
Sales - 509-684-5072
www.vaagenbros.com
Continued on page 56
By Zach Miller
At the time of this writing, the North American Lumber
market, relative to this time of year, can best be described
as idle. That said, there appears to be some optimism
that buying will begin to accelerate as spring nears and
inventories will need to be built. Even with the current
mild demand of most products, West Coast producers are
dealing with obstacles such as log supply and weatherrelated
disruptions. On top of that the U.S. just announced
its intention to raise the Softwood lumber duties from
8.05 percent to 13.86 percent creating uncertainty and confusion on how this will
affect market conditions. The following is what a few West Coast manufactures
had to say on the current climate:
Dean Garofano of Delta Forestry Group, Delta, BC said, “What a start to
2024! The extreme cold and snow that hit us in January had a significant impact
on Delta Forestry Group and most of the coastal industry. The unusually frigid
temperatures and frozen logs severely impacted production in the sawmills and
reman process, consequently delaying the runs and shipments. With weather
returning to normal, Coastal log
supply is currently Delta Forestry
Groups biggest concern.”
Garofano continued, “Economics
and policies continue to restrict
the harvest and Cedar volumes
continue to decline. That same
supply concern does not appear
to resonate with buyers who are
reluctant to take on inventory during
these winter months. I suspect
that once the spring weather arrives
and buyers look to ramp up
purchases, they will have a hard
time sourcing enough volume on
certain Cedar items. These factors
have led to Cedar gang and chipn-saw
log prices climbing and
merchandise staying stubbornly
firm. These log price increases,
along with stagnant Cedar lumber
prices, have resulted in manufacturing
margins being squeezed or
diminished. BCTS Timber sales,
year to date, have averaged only 9
percent Cedar content. Any sales
with a healthy Cedar content are
being bid and won with unbelievably
high evaluations, which
suggests that future Cedar log
appreciation is being built into the
bids. All the factors above, as well
as the recent news of the duty rate
increase coming later this year,
point to the likelihood that Cedar
lumber prices will be increasing.”
Garofano finished with this, “On
Do you know how your
lumber is made?
Scan the QR Code below to
see our fascinating step by
step process
a positive note, there does appear
to be some optimism for demand
once the winter weather breaks,
interest rates have likely peaked,
inflation is near target levels and
an election year in the U.S.A.
Should this North American
optimism become reality through
2024, and the export markets perk
up, it will be welcome news for
Cedar manufacturers.”
Leslie Southwick of C&D
Lumber, Riddle, OR said, “Supply
is currently outpacing demand
Continued on page 56
Page 24 Softwood Forest Products Buyer • March/April 2024 Softwood Forest Products Buyer • March/April 2024 Page 25