Mid-Year 2024 Hardwood Lumber Market Report: Current Observations & Projections

Periodically, we feel the need to update our customer base on current and expected future market conditions for the lumber and hardwood market through our first-hand encounters and industry experience. Many factors impact costs and availability of the vast and diverse product offerings that Mason’s Mill & Lumber carries. Here are our observations halfway through 2024 and our projections through year end into early 2025 on various products, items, and species of rough and finished lumber and plywood that we supply.

Domestic Hardwood Market

The domestic hardwood market remains relatively stable, with a few exceptions. While export demand for US hardwoods is soft, the diminished US production capacity since Covid has offset any significant softening of prices. Many sawmills closed during and after Covid and never reopened due to high production costs and low returns on investment. Domestic demand is stable and in equilibrium with current output. Certain species are in high demand and make up a limited portion of overall US production. These include walnut, white oak, and especially rift sawn white oak. Lead times on these items are often lengthy compared to other species, and price trends continue to reflect demand exceeding supply.

Domestic Plywood Prices

Domestic plywood prices have remained relatively stable this year but are inching upwards due to continued rising costs in raw materials. Face veneers, especially in certain species, as well as core stock veneers, continue to rise in cost, impacting final market pricing on finished plywood. This trend is expected to continue as entrenched inflation and rising production costs persist for the foreseeable future.

Imported Plywood Prices

Imported plywood items are experiencing sharp price increases for late summer and fall arrivals due to skyrocketing ocean freight costs. While not as severe as during the Covid-related supply chain disruptions, they are still significant. Container rates to ship from various Far Eastern ports to the US have more than doubled since March of this year, and costs on imported birch plywood reflect those effects. Spot container rates have now reached as high as $12,000 for a 40’ container, whereas they have been as low as $2,500 in the recent past. This trend is indicative of a sharp upward spike. In addition to an overall lack of containers and vessels, displacement of traditional Red Sea shipping routes due to ongoing Middle Eastern conflict has worsened the situation. Russian Birch prices are also rising due to increasing raw material and production costs, along with similar issues with container and vessel availability, driving costs upward and extending lead times.

Imported Decking Market

The imported decking market will see significant changes late in 2024. Ipe and Cumaru, two primary decking species, were added to the CITES (Convention on International Trade of Endangered Species) appendix in 2022, with changes taking effect in November 2024. This will lead to more scrutiny on the harvest and export of these species and a more laborious process to comply with new rules. This will impact costs and availability of these species and put added pressure on secondary species like garapa and tigerwood, theoretically driving up costs on those as well.

Positioning for the Future

Mason’s Mill & Lumber has positioned itself accordingly and made forward purchases where possible to ensure continued availability and less impactful price surges. Our goal is to keep our customers aware of ongoing market changes and remain a leading source of high-quality building materials at competitive prices.

We hope this report provides valuable insights into the current lumber market and helps you make informed decisions for your projects. Thank you for your continued trust in Mason’s Mill & Lumber. 

Ready to Start Your Next Project?

Let Mason’s Mill & Lumber be your trusted partner in providing high-quality building materials at competitive prices. Whether you need domestic hardwoods, plywood, or decking materials, we have positioned ourselves to ensure continued availability and minimized price fluctuations. Reach out to one of our experts today to learn more about the market and how we can assist with your building needs.