THE

W. T. BLACK tO Stoc,Lton St. San Fruci*o Sutter Zta

A. C. MERRYMAN Advertising Mamger

How Lumber Looks

The California lumber situation is strong and buying continues active. Fir cargo prices have strengthened. The Fir rail market is showing steady improvement. The Redwood mills are booking considerable business, while the pine and hardwood markets are showing substantial gains, with prices very firm. The retail trade reports that business is better and inquiries are increasing. Lath and shingle prices have advanced.

Unsold stocks on the public docks at San Pedro totaled tr4r4r0o0 feet on Mlay 24, as against 3r5t4r000 feet the previous week. Cargo arrivals at this port for the week ended lfv|'ay 20 totaled 10,0551000 feet which included !2 cargoes of Fir carrying 8r39orfi)O f.a, and 4 cargoes of Redwood with 1'665'000 feet; the previous week the cargo amivals arounted toT'S2O.OOO feet. On J|r,|'ay 2Or 49 lumber ve$els in the coastwise trade were operating; 56 vessels

The Southern Pine market is reported very strong, with prices steadily going up and the demand continues to increase. Reports from the South indicate that hardwoods are selling freely with the automobile, furniture and millwork industries all buying; prices are advancing and are expected to go higher atonce'

Residential building continues on the upgrade, the first three weeks of May indicating that the month will show a slight increese over I[Iayo 1972. If this materializes, it will be the first monthly gain in residential building since the spring of 1931. During the week, May 16 to May 22, reidential construction in the thirty-seven states east of the Rocky Mountains accounted for $6,562,3o0 of a total for all classes of f,16'388'900' according to the F. W. Dodge Corporadon.

Building permits in Los Angeles from May I to May 25 inclueive total€d $112281986 which surpasses the volume for the month of April by f39'000.* * *

The West Coast Lumberments Association reports a furthet increase in the domestic cargo markets4oth Atlantic Coast and California with a substantial gain in tfie rail trade, brotrght the total of new orders for the week endd }&.|ay 2O to the highest point since April, 1931. The increased business, the Association says, is held by the industry to be speculative. Ptoductiotr at the mills has been low, compared with o;ders and shipments. Unfilled orders are now 3O per cent of stocks, the highest since Apdl 1930. Stocks are 18 Per cent lower than at this time last year. The Association reports that white the consumption of lumber in building has not started, dealers are now anticipating their needs expecting fu*her advances. Th'e industry is continuing to gain in strengt{r every day, the Association states.

New business reported for the week ended ll'lay 2O by 179 mills was 11619791158 feet against a production of, 6815471752 feet and shipments of. 771963168 f,eet. Shipments were over production by 7.9O per cent, and current sales wete over production by 70.7 per cent. The orders b*td by this group of identical mills for the week exceeded the orders of the preceding week by Errl6rl02 feet, or 7.7 pet cent.

Details of orders and shipments reported by these 179 mills are: Orders-Rail 2918851091 feet; Domestic Cargo @r7r9r0r4 feet; Export 20,t58r797 feet; Locd 5,996236 feet. ShipmentsRail 25,003,417 f.eet; Domestic Cargo 2t,569r48t feet; Export 19,394,532 feet; Local 519961236 feet.

The Southern Pine Association for the week ended May 20, reported orders from 106 mills as 3812911000 feet; ship. ments 3510531000 feet, and production 251899O00 feet. Orders wete 47.85 per cent above production and 9.24 pet cent above shipments. Shipments were 35.34 per cent above production.

The $(/estern Pine Association for t{re wee& ended Mry 2O reported orders from 116 mills as 58r547r00o feet; shipmcnts 37r33lrOOO feet, and productio'tr 29r923rOOO f.eet. Orders were 95.6 pt cent over production and 56.E per cent above shipments. Shipments wete 24.7*OT ";rra ovet production.

The California Redwood Association for the mont{r of April, 1933, reported orders received from 12 mills as 15'989'fi)O feet; orders on hand 17rOllrOOO feet; Shipments l4r00lrq)O feet, and production 81726rOOO f.eet.

Details of orders and shipments for the month follows: Orderc"-Northern California 5,141,000 feet; Southern California 3r2O4rO0O feet; Westetn 115,(XX) feet; Eastern 61416,000 feet; Foreign 11113,000 feet. Shipments-Northern California 4,543,OOO feet; Southetn California 216241000 feet; Weetern l2ErOOO feet; Eastern 6'058'000 feet; Foteign 64ErOd) feet.

247 hardwood, mills give new business for the wee& ended lrlay 17 as 24r523rffi feet, or 138 pet cent above production, and shipments 2Or443rOOO feet or 99 per cent above production. Production was 10r284r(X)0 feet.

Yohn Yorgensen, c/o Loomber Koompany, Scotia, C,alif.

Dear Brother Yohn:-