Toward The End Of August The Recent Increases In Construction Framing
Dimension Softwood Lumber Prices Slowed Somewhat, While That Of Plywood And
Osb Did Pop A Little Bit.
Demand at sawmills and secondary suppliers increased noticeably, causing
sellers to wonder if this was just a momentary blip or if higher sales
volumes would carry through the Labour Day long weekend.
For the time being it seemed like a bit of an equilibrium had been reached,
as benchmark Western S-P-F KD 2×4 #2&Btr prices approached quite close to
where they had been in the same week last year.
Does this indicate a stability finally arriving for the lumber manufacturing
industry? Given that the data shows the price bottom was reached and
surpassed in mid-July this year, it does seem that a form of supply-demand
balance has been achieved.
Once the all-important Labour Day long weekend has been passed, confirmation
of this will be possible.
In the week ending August 23, 2024, the price of Western Spruce-Pine-Fir 2×4
#2&Btr KD (RL) was US$396 mfbm, which is up +$6, or +2%, from the previous
week when it was $390.
That week’s price is up +$57, or +17%, from one month ago when it was $339.
The Canada-wide rail strike dominated the conversation this week.
Dimension items continued to strengthen, led by 2×6 and 2×12 in most cases.
KEY TAKE-AWAYS:
Purveyors of Western S-P-F in the United States described a supply-driven
tack to business.
Secondary suppliers noted that volumes sold in half the time, as was the
case in recent months.
Supply of Eastern S-P-F was a worry going forward, with most customers’
inventory only covered for the next 30 days or so.
There was quiet discounting on certain widths and lengths of Southern Yellow
Pine as sawmills tried to keep the flow of material moving.
Buyers of green Douglas Fir were busier than they have been in months.
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 23,
2024 Was Down -$24, Or -6%.
Compared To Two Years Ago When It Was $624, This Week’S Price Is Down By
-$228, Or -37%
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