As November Dawned, The Extended Habit Of Not Stocking Inventory And
Just-In-Time Buying Once Again Caught Customers Short Of Necessary Wood.
The resultant strength of demand — while not massive volumes — was enough to
push prices up further.
Sawmills, emboldened by order files which grew from two weeks to almost five
weeks, were able to book actual sales at the new, higher prices.
Most expect this rising price trend will not last, as the seasonal holiday
break for both construction and lumber manufacturing is fast approaching.
A similar rise in lumber futures, after an extended time of flatness, even
further encouraged cash (or print) lumber price increases.
In the week ending November 1, 2024, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$428 mfbm. This is up
+$20, or +5%, from the previous week when it was $408, said weekly forest
products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$25, or +6%, from one month ago when it was $403.
Compared to the same week last year, when it was us$380 mfbm, the price of
western spruce-pine-fir 2×4 #2&btr kd (rl) for the week ending November 1,
2024 was up +$48, or +13%.
Compared to two years ago when it was $480, that week’s price is down -$54,
or -11%.
In the week ending November 1, 2024, the price of Southern Yellow Pine East
Side 2x4 #2&Btr KD (RL) was US$475 mfbm. This is down -$10, or -2%, from the
previous week when it was $485.
That week’s price is up +$10, or +2%, from one month ago when it was $465.
When compared to the same week last year, when it was $415, that week’s
price was up +$60, or +14%. Compared to two years ago when it was $465, that
week’s price was up +$10, or +2%.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
KEY TAKE-AWAYS:
A surge in futures after several weeks of stagnation buttressed ongoing,
market-wide, supply shortages.
Supply and demand were much more in line but sawmills certainly had the
upper hand.
Finding cash wood was a herculean task.
Strapped field inventories and perpetually low lumber supply kept orders
flowing and suppliers confident.
Sawmill order files stretched out to three- to five-weeks
Demand in the US Northeast proceeded at a measured pace as most buyers
endeavoured to limit their exposure.
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