The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-04-12
CURRENT MARKET CONDITIONS

CURRENT MARKET CONDITIONS
With the arrival of the spring sea-
son, the lumber market entered new
cycle. says the Southern Lumberman
for the week ending April s. This
statement may be made In view of the
fact that the process of deflatfon had
run its course, holders now have no
high priced stocks to liquidate. netting
do the producers have accunulatlons
of extensively manufactured lumber to
move; SO the path OF industry now IL
unusually free from distractions to
business expansion. In consuming
circles there is a growing need for
lumber OF all descriptions, and the
circumstances enumerated above
should Insure considerable. period of
active business for those engaged in
the manufacture and distribution OF
lumber The construction industry
supplied the demand necessary to
change the aspect Of the lumber from
a state OF uncertainty to one of ac-
tivity. Requirements of the wood
using industries gradually are becom-
ing heavier, and 1t is not too much
to expect that this demand will at no
distant date assume something OF its
accustomed proportions. Unfortunate
ly, the Improvement of the past few
weeks has not affected alike all
branches Of the industry. Hardwoods
still are slow, and the bulk OF the ium
Der demand of late being for several
varieties of softwoods generally used
for construction purposes.
Orders for Southern pine last week
compared favorably with those OF the
preceding period, the volume Of new
business being well above normal pro-
duction. Due to a decline in produc
ton, the margin between orders and
output shows practically no change,
the former being approximately one-
fourth greater that the latter. A
sharp decline in shipments was re-
ported during the week, but notwith-
standing this decrease, this factor re-
NAMED well above the level of actual
output. Retailers are far ahead in the
field of buyers, and the market,
through the influence of this demand
has resolved itself into state where
construction material finds ready, If
not eager takers. A larger portion of
these orders now seemingly are for
future needs, or at least orders for
carload lots are more numerous. This
however, can be ascribed to the great
ly augmented requirements of the
building industry in practically every
section of the country. which is of it
self sufficient to bring about marked
increase in business, without any pro-
vision on part of buyers for their pro-
bable needs for the ensuing season.
In North Carolina pine circles the
month of April opened under circugm-
stances decidedly suspicious. The
volume OF orders booked during this
period compared fayorably with the.I
best weeks OF the year, add exhibited
another favorable tendency in that the
business transacted was largely in low
grades, thus affording the manufac-
turers an opportunity to further re-
duce supplies of the only material held
to excess Demand for the better var
ieties did not suffer, but the fact that
few mills can accept orders for these
grades except on the basis OF current
production, limits the volume of this
business. From present indications
the North Carolina pine industry is
on the open road to prosperity and
manufacturers are now proceeding
with the assurance of satisfactory
market and one whose scope may be
expected to expand as the season ad-
Vances.
Although the hardwood market from
week to week does not present a ma
terially changed aspect there is under
way a gradual drift toward better con-
ditions that already has resulted in a
vastly improved situation when COM
pared with that of the early weeks OF
the year. Unfortunately, the situation
within recent weeks has resolved itself
into a state where ono portion OF the
industry profits at the expense OF the
other. With the flood situation in the /
lower Mississippi Valley still serious
and most OF the mills in that section |
idle, or opea6fiong part time only, |
buyers accustomed to securing their |
requirements in that section have been
compelled to turn to producers Of
other regions. The enforced idleness |
CT a large number OF the producing |
Units maintains tho upward trend OF
prices OF the upper grades. which man
ifestod itself when the flood situation !
first became serious. No Improvement
in the movement of the this material I
is expected to follow the application OF
slightly lower rates next week, but
these reductions are regarded as being \
totally inadequate to end the low grade
Btagnation-Southern Lumberman.