As May 2024 Ended And True Summer Arrived, The Usual Seasonal Increase In
Lumber Sales Volumes Did Not Materialize.
This meant lumber prices stayed generally flat to where they had been in the
past month. Demand remained relegated strictly to immediate needs only;
customers stuck to their now long-term habit of buying only the wood they
immediately needed for existing projects.
There still was no stocking of inventory.
In the past the decrease in production volumes at sawmills at this time of
year would cause concern with customers. However, the overriding sentiment
is a lack of confidence in any immediate improvement for new housing
construction numbers.
As such, many lumber buyers continued to wait and see if prices would drop
before committing to make significant volume purchases.
In the week ending May 31, 2024, the price of benchmark softwood lumber item
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$384 mfbm. This is flat
from the previous week when it was $384.
That week’s price is down -$46, or -11%, from one month ago when it was
$430.
Most lumber traders reported uninspiring business; the litmus test of
Memorial Day weekend yielded mixed results.
KEY TAKE-AWAYS:
Producers showed some month-end discounts as they tried to turn some
accumulated material into invoices for their books.
Random dimension commodity prices remained in a narrow range around last
week’s levels, with producers feeling just as little urgency as buyers.
The downside risk in most Southern Yellow Pine commodities was now
nonexistent.
Buyers in key California construction markets apparently got what they
needed for the short-term.
Secondary suppliers in the United States thought the price bottom had come
and gone following the Memorial Day weekend.
Vendors were worried that this year was effectively a write-off already,
given the poor showing in spring.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$350 Mfbm, The Price Of
Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending May 31, 2024
Was Up +$34, Or +10%.
Compared To Two Years Ago When It Was $700, That Week’S Price Is Down -$316,
Or -45%.
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