U.S. lumber and panel market reports-20120930

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U.S. lumber and panel market reports

September 30, 2012

U.S.: Lumber and panel market report ---- Week 39 2012

The market sputtered, and framing lumber prices finished lower. Most buyers steered clear of all but must-have purchases, and quick shipments were also a requirement for many buyers. Some traders sensed a bottom was at hand, as downward pressure eased on some items, such as 2x4 9-foot studs. Meanwhile, lower prices drew more interest from offshore buyers, partially offsetting weakness in the domestic market. The Random Lengths Framing Lumber Composite dropped $6, a fourth straight weekly decline.

Week
Sep 28

Week
Sep 21

Year Ago
2011

Random Lengths Framing Lumber Composite Price*
$323
$329
$265

KD Western S-P-F #2&Btr 2x4 R/L Mill Price
285

294
240

KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes
385

395
325

Green Douglas Fir Std&Btr 2x4 R/L (Portland)
265

275
245

Southern Pine (Westside) #2 2x4 R/L
383

385
268

KD Coast Hem-Fir Std&Btr 2x4 R/L
295

302

267

Ponderosa Pine (Inland) #2&Btr 1x12 R/L
487

480

575

* Weighted average of 15 key items

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Structural panel prices continued to retreat amid declining sales. While OSB pricing was in disarray, the overall downward trend was clear enough as mills everywhere sought offers from customers. A few blocks were placed at sharp discounts. Southern Pine plywood producers pushed hard to fill next week¡¯s order files, and a few finished filling this week¡¯s shipping schedule by chopping prices. With shipments of western Fir sheathing still available for September early in the week, mills were receptive to lower offers.

(f.o.b. mill prices)	Week Sep 28	Week Sep 21	Year Ago 2011
Random Lengths Structural Panel Composite Price*	$419	$439	$301
Southern (west-east) 15/32-inch 3-ply exterior sheathing plywood	405-430	425-450	335-360
Southern (west-east) 15/32-inch 4-ply exterior sheathing plywood	400-440	425-460	340-370
Western 1/2-inch 4-ply exterior sheathing plywood	430	445	345
North Central 7/16-inch Oriented Strand Board	320	350	185
*Weighted average of 11 key items

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