U.S. lumber and panel market reports-20120502

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U.S. lumber and panel market reports

May 2, 2012

U.S.: Lumber and panel market report ---- Week 17 2012

Shock waves from another fatal mill fire in British Columbia rippled across framing lumber markets in the U.S. and Canada. In the wake of the second mill explosion this year, provincial authorities announced plans to inspect all sawmills for wood dust and other potential catalysts. That put the milling of dry beetle-killed timber in focus, and it came on the heels of a leaked government report detailing sharp cutbacks in timber supplies as the long-running beetle salvage begins to wind down. Stud prices surged.

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Week
Apr 27

Week
Apr 20

Year Ago
2011

Random Lengths Framing Lumber Composite Price*
$316
$302
$264

KD Western S-P-F #2&Btr 2x4 R/L Mill Price
289

280
238

KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes
384

375
333

Green Douglas Fir Std&Btr 2x4 R/L (Portland)
240

235
250

Southern Pine (Westside) #2 2x4 R/L
330

318
265

KD Coast Hem-Fir Std&Btr 2x4 R/L
305

297

270

Ponderosa Pine (Inland) #2&Btr 1x12 R/L
622

630

650

* Weighted average of 15 key items

Structural panel sales gained momentum as the week progressed. The sleepy tone that was prevalent in OSB trading early in the week changed Wednesday when some markets stirred. Buyers in the West were responsible for much of the business. Most prices crept higher at Southern Pine plywood plants, even though the sales pace failed to extend order files a full week. The fervor in studs caused western Fir plywood buyers to consider the precarious balance between supply and demand, and it pulled some off the fence to replenish thin inventories.

(f.o.b. mill prices)	Week Apr 27	Week Apr 20	Year Ago 2011
Random Lengths Structural Panel Composite Price*	$349	$345	$284
Southern (west-east) 15/32-inch 3-ply exterior sheathing plywood	380-400	375-395	300-315
Southern (west-east) 15/32-inch 4-ply exterior sheathing plywood	385-415	380-410	310-320
Western 1/2-inch 4-ply exterior sheathing plywood	373	367	300
North Central 7/16-inch Oriented Strand Board	220	215	167
*Weighted average of 11 key items

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(Source: Used with permission granted by Random Lenghts Publications, Inc.)