As Winter Weather Is Ending Across Most Of The Continent And Building
Projects Start To Come Back To Life, Many Customers Of Construction Framing
Dimension Lumber Products Remain Circumspect.
After the great shocks of extreme price volatility from 2020 to 2022, buyers
of wood remain quite cautious. Because the previously “normal” historical
price trends, which generally followed the seasons, has not been evident for
the past three years, customers are wary of another shock.
Mainly they are unsure if lumber prices will fall lower, thus are holding
off on any large-volume purchases.
Since customers are choosing to continue with just-in-time buying for
immediate needs, and since there is no stocking up of inventory yet for this
year,sales volumes at sawmills and wholesalers are not robust enough yet to
push prices up. Thus most lumber prices remained flat yet again in
mid-March.
In the week ending March 15, 2024, the price of Western Spruce-Pine-Fir 2×4
#2&Btr KD (RL) was US$452 mfbm, which is flat from 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.
Demand and takeaway improved tangibly in most categories as strong
market machinations continued to be driven mostly by lack of supply. Panels
were on a weird, wild ride of strong demand and rising prices.
The Spruce-Pine-Fir market continued to be largely supply-side driven,
with several ongoing curtailments among major producers helping to keep log
decks thin. Buyers continued to favour distribution channels, hoping to wait
out mills until supply levels catch up. Scuttlebutt surrounding limited
supply convinced heretofore less-motivated purchasers to get off the fence
and look at securing some of their anticipated spring needs.
As always, the tone of business for Southern Yellow Pine sales varied widely
from zone to zone, with most opportunities for value on narrows in the
Central and Eastern regions.
Multiple reports reinforced the West as its own pocket of liquidity due to
the abundance of sawmills there. Amid ongoing issues with supply of
large-diameter logs, the tightest in supply was 4x4s as demand from treaters
ramped up recently amid ongoing issues with supply of large-diameter logs.
Demand for Sheet goods in Eastern Canada was up-and-down, with most inquiry
and takeaway still coming from US markets. Sticker shock abounded among
buyers as prices vaulted another four to five points in both categories.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$364 Mfbm, The Price
Of Western Spruce-pine-fir 2×4 #2&btr Kd (Rl) For The Week Ending March 15,
2024 Was Up By +$88, 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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