As April waned, the usual spring buying of construction framing softwood
lumber had not yet materialized. Suppliers had plenty of inventory on hand
for customers who continued to only order wood for immediate needs. As such,
supply remained quite ahead of demand. Even as the days got progressively
longer and the weather improved, there did not seem to be a boom in home
building, as has been historically normal. As such, the recent and ongoing
production curtailments – especially in British Columbia – helped keep
sawmill order files to within two or three weeks.
In the week ending April 28, 2023, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$360 mfbm, which is
flat from the previous week. This is down by $13, or 3.0 per cent, from one
month ago when it was $373.
Good takeaway of low-grade commodities persisted as industrial customers
remained active. A growing contingent of suppliers felt the market was
undervalued and poised to go on a run.
“The interminable wait for spring activity to arrive persisted this week.
Buyers remained cautious while suppliers chomped at the bit.” — Madison’s
Lumber Reporter
Demand for Western S-P-F in the United States was so-so, to hear traders
tell it. Business was heavily region- and product-dependent, with
bread-and-butter dimension and stud items garnering the lion’s share of
demand. Experienced players wondered whether sawmills might consider cutting
the odd shift to pull material out of what many referred to as an
oversupplied market. Downstream buyers were content with replenishing
through the distribution network and still showed no urgency to cover more
than immediate needs.
According to Canadian purveyors, the Western S-P-F market continued to
struggle to reach typical spring price levels. Prices stabilized further,
with nearly all dimension commodities remaining at or on either side of the
previous week’s numbers. Notable exceptions were found in straight length
2x10s, several of which came back down to earth in triple-digit tumbles.
Secondary suppliers noted that the market seemed oversupplied still, even if
availability was largely hit-and-miss depending on the source and item.
Spring had sprung for the most part, but weather continued to be an issue in
some key consuming regions. Buyers were fond of leaning on LTL and mixed
load business through the distribution network when they needed coverage.
“Sales of Eastern S-P-F started the week on shaky ground before finding
firmer footing. Demand was fair to middling, with most sales activity going
to secondary suppliers who offered flexible tallies and quick shipment. One
veteran trader noted that every deal was a unique challenge as orders did
not come easy. While prices of studs and low grade firmed up in both the
Great Lakes and Toronto markets, R/L #2&Btr dimension was comparatively
listless. A better tone emerged around midweek when buyers sensed a change
in the wind and started to secure more coverage. Sawmill order files were no
further than two weeks out.” — 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$1,060 mfbm, the price of
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) for the week ending April 28,
2023, this price was down by $700, or 66 per cent. Compared to two years ago
when it was $1,330, that week’s price is down by $970, or 73 per cent.
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