Following the Easter long weekend, demand for lumber increased somewhat
however supply remained abundant. Sales to retailers increased noticeably,
as weather across the continent became more seasonably mild. Prices of most
softwood lumber and panel commodity items remained relatively even; some
were up and some were down a little bit. Sales volumes remained lower than
historically normal for the time of year. Expectations for the usual spring
building season remained — once again — in the future. It seemed like the
recent influx of European wood imports was starting to slow down.
In the week ending April 14, the price of benchmark softwood lumber item
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$350 mfbm, which is up by
$15 or 4.0 per cent, from the previous week when it was US$335 mfbm. This is
down by $23, or 6.0 per cent, from one month ago when it was $373.
Sales of panels continued to flounder compared to lumber and studs,
though Oriented Strand Board seemed to gain some traction. Meanwhile, real
spring construction and resultant demand for building materials remained
elusive.
“Many buyers considered Easter weekend the latest important litmus test, and
after seeing steady numbers from the sawmills, decided to secure more
coverage.” — Madison’s Lumber Reporter
Sales across the entire North American solid wood commodities market
continued to sputter to life, and US Western S-P-F was no exception.
Availability appeared abundant as buyers stuck to their hand-to-mouth
purchases, but mounting reports of tightening supply at the sawmill level
belied the notion of a vastly oversupplied market. Retailers were busier
than in recent weeks, noting that the counteroffers accepted by mills have
recently slimmed down to $5 to $10 at most. The influx of European spruce
seemed to be waning lately, but there was still plenty available at lower
price points than domestic wood. Producers maintained two- to three-week
order files.
Western S-P-F lumber prices firmed up for the most part as players returned
to their desks after the Easter holiday long weekend. While Monday was
quiet, sales gained momentum from Tuesday-on. Players continued to report a
broad perception of oversupply from the view of buyers, however. While sales
volumes showed a promising direction, demand had yet to equalize with supply
and reach a pace typically associated with the spring season. Secondary
suppliers continued to field good takeaway from buyers looking for
last-minute coverage. Two-week order files at sawmills were the norm.
“
Buyers of Kiln-Dried Douglas-fir commodities continued to play it
cautious, sticking to short-term coverage of their most immediate
inventory-needs. Apparently, some sawmills were having trouble restocking on
fibre as log sellers boosted their asking prices, and kept shopping around
until they found someone willing to go higher on purchase price. For their
part, producers upped their asking prices on narrows a jot and held the line
on less-popular wides for the time being. At sawmills, dimension lead times
were still into the week of April 24th.” — 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 14,
2023 this price was down by $746, or 68 per cent. Compared to two years ago
when it was $1,130, that week’s price is down by $780, or 69 per cent.
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