enough to stimulate a lot of new
exploration and production. Many oil
companies have reduced capital outlays on
exploration of new fields and claim new
projects will be slow in coming until prices
rise. If that is true, then demand for board
road and crane mats is likely to remain flat
unless the U.S. embarks on a broad
infrastructure improvement program like
that proposed by the Trump
Administration.
Framestock
Upholstered furniture manufacturers continue to favor plywood
and other panel products over solid hardwood in frame production
and are also using more metal. Nevertheless, supplies of solid
hardwood framestock are contracting as improved markets for other
low grade hardwood items are allowing sawmills to minimize its
production.
A year ago, in this column, we wrote, "Upholstered furniture
factories are now accustomed to using panel products, and even the
lowest hardwood framestock prices in more than 10 years have not
revived demand. It appears the market
for solid hardwood framestock has
permanently contracted." This assessment
is as valid today as it was then.
A Welcome Relief
Industrial products comprise 52% of
hardwood sawmill output, according to
HMR estimates. As noted above,
demand for board road, crane mats, and
framestock remains flat. However, the
two largest industrial hardwood markets –
pallet stock and railroad ties – have improved significantly, which is
a welcome relief for sawmills.
PC
28
PalletCentral • November-December 2017 palletcentral.com
MARKETS
Hardwood Market Report (HMR) has provided weekly price and market information
on North American hardwood lumber and lumber products continually since 1922.
Recognized as the authoritative source of data and market analysis, HMR is
circulated throughout the world in print and via Internet at www.hmr.com.
For more information, email: David Caldwell, Associate Editor, at david@hmr.com;
Judd Johnson, Editor, at judd@hmr.com; Andy Johnson, Associate Editor, at
andy@hmr.com.
