U.S. lumber and panel market reports-20120820

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U.S. lumber and panel market reports

August 20, 2012

U.S.: Lumber and panel market report ---- Week 33 2012

While sales of some framing lumber species cooled, it was full steam ahead in others. For the market as a whole, traders widely believed that mill output continued to lag demand. Apprehension about higher prices and seasonal trends had some buyers pulling back. But, with August shipments drying up, some secondaries took the leap into September, giving mills orders for shipment the weeks of the 3rd and the 10th. The Random Lengths Framing Lumber Composite Price posted another gain, to $340.

Week
Aug 17

Week
Aug 10

Year Ago
2011

Random Lengths Framing Lumber Composite Price*
$340
$334
$262

KD Western S-P-F #2&Btr 2x4 R/L Mill Price
315

309
225

KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes
423

414
318

Green Douglas Fir Std&Btr 2x4 R/L (Portland)
318

302
245

Southern Pine (Westside) #2 2x4 R/L
347

339
268

KD Coast Hem-Fir Std&Btr 2x4 R/L
328

320

260

Ponderosa Pine (Inland) #2&Btr 1x12 R/L
470

485

535

* Weighted average of 15 key items

Structural panel markets sustained the resent scorching pace. OSB prices posted double-digit gains for a fourth consecutive week. Trading at the mill level was not brisk, as many producers again spent much of the week off the market. Long order files allowed Southern Pine plywood producers to keep upward pressure on prices, even while most secondaries focused on selling the wood they owned. In western Fir plywood, reluctance of secondaries to extend long positions intensified as prices gained, leaving buyers scrambling to fill inventory gaps.

(f.o.b. mill prices)	Week Aug 17	Week Aug 10	Year Ago 2011
Random Lengths Structural Panel Composite Price*	$442	$425	$288
Southern (west-east) 15/32-inch 3-ply exterior sheathing plywood	435-470	427-462	282-315
Southern (west-east) 15/32-inch 4-ply exterior sheathing plywood	450-482	438-478	290-320
Western 1/2-inch 4-ply exterior sheathing plywood	467	455	312
North Central 7/16-inch Oriented Strand Board	337	320	195
*Weighted average of 11 key items

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