U.S.: Lumber and
panel market report ---- Update Weekly
Sales in most framing
lumber species slowed toward the end of last week. But mills maintained leverage with
order files through the month and the supply side limited by maintenance and
market-related production curtailments. Many prices moved higher, but the bulk of the
gains came earlier in the week on momentum carrying over from last week's action. The
Random Lengths Framing Lumber Composite Price rose to $311, nearing the $316 trigger point
at which the tax on Canadian shipments to the U.S. would decline if the market were to
sustain that level for several weeks.
Structural panel sales gained momentum, and the OSB market went on a tear. Light
inventories left buyers with little cushion when Tolko announced sharp production cutbacks
at its mills in High Prairie, Alberta, and Meadow Lake, Saskatchewan. Southern Pine
plywood markets mirrored the trading patterns of the last several weeks. Producers
extended order files about a week. In western Fir plywood, an imbalance between production
and consumption remained tilted in the mills' favor.