Prices on many lumber commodity items again ticked upward as all players’
inquiries at sawmills increased. Subsequently order files stretched out to
three weeks or longer.
In addition, end-users tried to put pressure on suppliers for quicker
shipments of wood products already ordered, mostly to no avail.
Deliveries have already been a challenge for more than one year, so there is
not much lumber sellers can do to speed up transportation. An administrative
jump in softwood lumber duties on Canadian imports to the US and a looming
railway work-stoppage in Canada only increased uncertainty.
In the week ending August 16, 2024, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$395 mfbm. This is up
+$10, or +3%, from the previous week when it was $385.
That week’s price is up +$46, or +13%, from one month ago when it was $349.
KEY TAKE-AWAYS:
US suppliers of Western S-P-F were largely finished clearing out any
leftover cheap material.
Unending inquiry for wider widths and not even close to enough coverage for
buyers.
Purchasers insisting on replacement-buying over the past several months had
no inventory of their own to fall back on.
Months of hand-to-mouth buying left field inventories in a severely depleted
state.
Strong demand for Eastern S-P-F handily outpaced dwindling supply.
Buyers had trouble getting a handle on significant variations in pricing and
availability between sawmills.
While increasing prices of Southern Yellow Pine had lead this latest rally;
it was now noticeably lagging behind a stronger looking S-P-F market.
Recent rainy weather in the US South reduced the amount of larger-diameter
logs in many sawmill decks.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$420 Mfbm, The Price Of
Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending August 16,
2024 Was Down -$30, Or -7%.
Compared To Two Years Ago When It Was $624, That Week’S Price Is Down -$234,
Or -38%.
More Reports:
