What is normally considered a “litmus test” of sorts for the construction
framing dimension softwood lumber market, the week leading up to the Easter
holiday demonstrated still weak demand. Indications, though, were for
increasing sales volumes to come, as sawmills were better able to deflect
counter-offers than in recent weeks.
Another bought of harsh winter weather, especially in eastern Canada, kept
home building activity low. Several regions across the continent did
experience actual spring, thus demand for wood did start increasing. As the
calendar moves closer to May, the usual spring building season will truly
arrive.
In the week ending April 7, the price of Western Spruce-Pine-Fir 2×4 #2&Btr
KD (RL) was US$335 mfbm, which is down by $21, or 6.0 per cent, from the
previous week when it was $356. That week’s price is down by $38, or 10 per
cent, from one month ago when it was $373.
Excess overall supply of Southern Yellow Pine and European wood continued to
give buyers myriad options to cover their positions.
“Solid wood commodity traders reported a so-so pace to sales activity in
virtually every category during the holiday-shortened week.” — Madison’s
Lumber Reporter
Sales of Western S-P-F commodities started the week on a so-so note and
dwindled slowly from there. According to traders in the U.S., buyers were
content with their inventories and took the opportunity of a
holiday-shortened week to retreat to the sidelines. Producers maintained
late-April order files and kept their asking prices at or slightly on either
side of the previous week’s levels. Another spate of cold weather enveloped
much of the U.S. Midwest, dampening demand from that region. Players noted
that sellers of European wood were changing their strategies, with that
source of supply anticipated to dry up.
Suppliers of Western S-P-F lumber in Western Canada reported pokey demand.
Buyers stayed cautious and were only too happy to play it quiet in advance
of the Easter holiday weekend. Modest business persisted through the
distribution network, but those sales volumes remained subpar by any
standard. Buyers continued to avoid any speculative purchasing. For their
part, producers were increasingly disinterested in counter-offers even as
they showed plentiful availability. While the outlook was cold and wet in
the West over the holiday weekend, players looked toward warmer weather in
the long-term forecast.
“Southern Yellow Pine trading slowed down as the Easter holiday
approached and buyers took the opportunity to step back and digest
previously-ordered material. Producers remained confident, keeping their
numbers firm or slightly above last week’s levels and extending order files
into late-April on most items. Industrial customers stayed more active than
other buyers, and studs were again a steady seller.” — Madison’s Lumber
Reporter
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly
Averages
Compared to the same week last year, when it was US$1,096 mfbm, the price of
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) for the week ending April 7, was
down by $761, or 21 per cent. Compared to two years ago when it was $1,110,
that week’s price is down by $565, or 51 per cent.
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