Our outlook for hardwood markets has dimmed. The belief that markets would rebound once China worked through excess inventory and returned from holidays has given way to the more likely probability that production will outpace demand at least through the third quarter. The “correction” we’ve been forecasting is already deeper than anticipated, and there is less hope now that things will get better before they get worse. The real price driver over the next few months will be supply. Though demand for crossties and pallet stock is still strong, producers have migrated to these markets as pipelines have filled for other low-grade products. Though common-grade markets are oversupplied and low-grade markets are filling up, we see little evidence production will slow in the short-term; too much has been invested in timber, logs and mill upgrades in the past two years to idle these assets. The Hardwood Leader contains essential forecasts for industry members. Call 704-543-4408 to learn more.