With cold winter weather still a serious issue across the continent,
secondary suppliers of construction framing dimension softwood lumber
competed fiercely for whatever small sales volumes they could muster. As for
producers, sawmills held their ground on pricing only to be met with
resistance from customers. As such, prices did drop – precipitously back to
lows seen in the depths of January.
Lumber manufacturers and resellers alike could only wait for better weather
to come on, bringing with it a return to the hammers-and-nailing of renewed
construction activity for this year. The good news is that there has been no
impediment to timber harvesting, thus log supplies at sawmills across Canada
and the U.S. are good; in expectation of increasing demand once the weather
actually does improve.
In the week ending March 10, the price of Western Spruce-Pine-Fir 2×4 #2&Btr
KD (RL) was US$365 mfbm, which is down by $35, or nine per cent, from the
previous week when it was $400. That week’s price is down by $91, or 20 per
cent, from one month ago when it was $456.
Demand for North American lumber meandered aimlessly as ongoing winter
weather stalled spring buying once again.
“
Ongoing winter weather in many key markets kept demand to a minimum,
while commodity prices were messy and indeterminate.” — Madison’s Lumber
Reporter
Producers of Western S-P-F lumber and studs in the United States described
mid-March as a sloppy week for inquiry and sales. Asking prices were
adjusted on several bread-and-butter items. Secondary suppliers engaged in a
race to the bottom as they fiercely competed for limited business. Buyers
remained circumspect in their dealings, typically sticking to secondary
suppliers where they could haggle more freely on price point. Sawmill order
files were between two- and three-weeks out, with a few items showing up for
prompt delivery from some sources.
Western S-P-F lumber sales in Canada meandered aimlessly as buyers sat
firmly on the sidelines. Business continued to be confined to small-volume,
just-in-time purchases. The distribution network took care of most of that
volume, furnishing customers with highly-mixed truckloads of specific
tallies. Transportation has been a slower affair of late, with players
worrying that transit times will worsen significantly when spring buying
takes off.
“
Demand for Western S-P-F studs was hit-and-miss, though producers noted
that sales were stronger than for dimension. Buyers maintained their
cautious approach, feeling little pressure to cover more than immediate
needs. When they did step in to make purchases, the distribution network had
sufficient availability at more flexible price points, and with faster
arrival times, than did producers. Sawmills hoped prices had reached a
bottom, as winter weather persisted in many important consuming regions.” —
Madison’s Lumber Reporter
Compared to the same week last year, when it was US$1,400 mfbm, the price of
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) for the week ending March 10, was
down by $1,035, or 74 per cent. Compared to two years ago when it was
$1,040, that week’s price is down by $675, or 65 per cent.
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