At this time of year, the historical trend would normally be for lumber
prices to be rising. Usually by mid-April the building activity for housing
is ramping up, and sales volumes of construction framing lumber are
approaching their high for the year. This year, however, is proving to be
quite the exception. The biggest reason for this has been an extended
winter, with cold weather – and even freezing conditions – ongoing
throughout the continent even this month.
For builders this is a problem, especially for brand-new projects which
require concrete foundations to be poured. As the entire industry waits for
normal balmy temperatures to consistently arrive, the demand for lumber and
wooden building materials is soft indeed. This, of course, means prices this
year have not yet started their annual climb.
In the week ending April 21, the price of Western Spruce-Pine-Fir 2×4 #2&Btr
KD (RL) was US$360 mfbm, which is up by $10, or three per cent, from the
previous week when it was $350. That week’s price is down by $13, or three
per cent, from one month ago when it was $373.
Buyers continued to avoid taking anything resembling a long position,
preferring to subsist on hand-to-mouth deals instead.
“
Encouraging signs came from various pockets of the North American solid
wood commodities market, but sales activity overall continued to fall short
of typical spring levels.” — Madison’s Lumber Reporter
Buyers of Western S-P-F lumber and studs in the United States maintained
their cautious approach this week. Sales volumes were better into certain
regions, but overall demand continued to fall short of typical spring
levels. Sales of low-grade lumber remained strong, while #2&Btr 2×4 R/L
emerged as the most sought-after width as buyers pursued coverage for
upcoming construction projects. WSPF stud trims experienced steady demand
throughout the week. Sawmills found success with higher numbers on narrows,
while wides were weak by comparison. Order files stretched into the week of
May 8th.
The Western S-P-F dimension market settled into a more stable pattern over
the course of this week. Canadian producers adjusted their asking prices
again, with most items remaining at or on either side of last week’s levels.
Four-inch R/L experienced strong inquiry and takeaway the whole week
according to both primary and secondary suppliers. Meanwhile, wides were
apparently a struggle by contrast.
“
Canadian suppliers of Western S-P-F studs reported improved activity as
buyers on both sides of the border were busier than in recent weeks. Those
from the U.S. were decidedly livelier, while the Canadian market was still
slowly coming out of hibernation. Producers pushed their asking prices up on
all trims aside from overabundant 2×6-8’s. The scarcest and strongest
in-demand trim was again 2×6-9’. Stud mills extended their order files into
the first half of May.” — 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$815 mfbm, the price of
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) for the week ending April 21, was
down by $270, or 33 per cent. Compared to two years ago when it was $1,090,
that week’s price is down by $545, or 50 per cent.
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