While customers continued to be very cautious, preferring to only order wood
for building projects ongoing, suppliers warned of potential looming
shortages.
For their part, buyers were concerned that prices might fall — despite being
quite flat for most of this year — thus were reluctant to stock up on
inventory.
Producers, meanwhile, have been quite disciplined with keeping manufacturing
volumes low, in line with this muted demand since mid-2022.
As the spring home construction season starts to come on, suggestions of low
field inventories thus potential lack of supply seem valid.
In the week ending March 8, 2024, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$452 mfbm. This is
flat compared to the previous week when it was $452. That week’s price is up
by +$8, or +2%, from one month ago when it was $444.
Panel prices soared, amid widespread confusion. As rising demand outstripped
limited supply, lumber and stud prices gained momentum.
As demand slowly improved Western S-P-F purveyors in the United States
had much the same posture as they did the previous week. Inventory-holders
with wood on the ground were in the driver’s seat, especially as dwindling
availability gave buyers fewer options.
Rising demand for studs ran up against subpar supply, pushing prices up.
Many buyers tried to stay circumspect, but those who were slow to purchase
missed out and usually ended up capitulating to higher prices. Even large
secondary suppliers reported atypically low inventories.
Suppliers of Western S-P-F lumber in Western Canada noted a strong uptick in
inquiry and takeaway of all product lines. Prices of standard- and
high-grade numbers were flat to slightly up, with sawmills showing
confidence in their positions as overall supply was perceived to be limited.
In what many called the busiest week for dimension lumber sales so far in
2024, sales of narrows led the charge.
Late-March order files were widely reported by sawmills, even as another
bout of winter weather in the West pressed pause on construction activity in
several areas. Snowfall disrupted transportation in those same regions, but
not to an egregious degree.
Traders of kiln dried Hemlock/Fir commodities were slammed with orders as
buyers kept extremely busy. While demand continued to heat up palpably,
producers extended their order files into late-March or early-April.
Experienced players voiced their expectations of a good spring run given
this recent surge in business. Those forecasts were lent more credence by
the pervasive lack of material up and down the supply chain. Everyone from
large suppliers to end users had lower-than-average inventories.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$365 Mfbm, The Price
Of Western Spruce-pine-fir 2×4 #2&btr Kd (Rl) For The Week Ending March 8,
2024 Was Up By +$87, Or +24%. Compared To Two Years Ago When It Was
Us$1,400, That Week’s Price Is Down By -$948, Or -68%.
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