Since The Increase Of Mortgage Lending Rates In Mid-2022, New Housing
Construction Dropped And Demand For Dimension Softwood Lumber Products Fell
With It.
After the previous two years of economic upheaval and unprecedented price
highs, forest industry players and home builders alike have been looking for
indication of what is the new market “normal”. Currently lumber pricing
levels are hovering around where they were this time last year; some are
higher, some are lower.
The fundamental driving lumber market dynamics right now is muted demand as
no one is stocking up on inventory. Since buyers are continuing with their
now more than one-year-long practice of buying wood for immediate needs
only, the sales volumes at sawmills remain lower than in recent years thus
prices are soft. Questions abound
regarding where will prices go; given the continuing utmost caution by
customers, there is a possibility that lumber prices will remain somewhere
along the level they are now. For the next month or two, anyway.
In the week ending March 29, 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 for solid wood products took a breather this week as buyers had their
immediate needs covered ahead of the Easter holiday weekend.
Demand for Western Spruce-Pine-Fir commodities in the US ebbed.
Producers leaned on solid sawmill order files into mid-April.
In Canada Western S-P-F producers held their prices firm as sawmills
maintained two- to three-week order files.
Eastern S-P-F trading was punctuated by sporadic and unmeasured fits of
demand.
Secondary suppliers there showed a wider range of prices depending on the
need to move any unwanted leftover material.
No heavy discounts were reported.
The slide in Southern Yellow Pine prices continued as there was too much
wood available and not enough takeaway. Producers showed more discounted
material on their lists by the day. Sales volumes of treated SYP lumber did
show promise, however, in the US Southeast thanks to rising home centre
demand.
Strong, steady takeaway of Douglas Fir Reload and Delivered persisted in the
US Northeast. Customers scrambled to cover material for framing packages.
Prices of Douglas fir Oriented Strand Board in the East reached numbers that
justified switching to plywood in some regions.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$356 Mfbm, The Price
Of Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending March 29,
2024 Was Up By +$96, Or +27%.
Compared To Two Years Ago When It Was $1,410, That Week’S Price Is Down By
-$958, Or -68%.
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