In Mid-September Some Big Questions About What Is Happening With The Lumber
Market And Lumber Prices Were Answered; When The Benchmark Lumber Price
Reached The Exact Amount Of The Same Week In 2023.
In a week of otherwise slow sales, another sawmill-closure announcement
generated increased demand early on.
The sales price (FOB sawmill) of Western Spruce-Pine-Fir KD 2×4 #2&Btr was
US$410 mfbm, just as it was in mid-September last year. Producers and
customers alike have been asking since mortgage interest rates started
rising in summer of 2022, “what will the new lumber market look like, at
what price levels?”
Since the effects of the extreme volatility and stark changes during Covid
and due to the destruction of transportation from the atmospheric river in
British Columbia, now that these one-time circumstances are in the past,
industry and watchers are
better able to understand the current situation. And from there, make some
assessments of how the rest of this year will play out for lumber sales and
prices.
In the week ending September 13, 2024, the price of Western Spruce-Pine-Fir
2×4 #2&Btr KD (RL) was US$410 mfbm, which is up +$4, or +1%, from the
previous week when it was $406, said weekly forest products industry price
guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$28, or +7%, from one month ago when it was $382.
When compared to the same week last year, when it was $410, that week’s
price is flat. Compared to two years ago when it was $520, that week’s price
is down -$110, or -21%.
In the week ending September 13, 2024, the price of Southern Yellow Pine
East Side 2x4 #2&Btr KD (RL) was US$395 mfbm. This is flat from the previous
week when it was US$395 mfbm.
That week’s price is up +$5, or +1%, from one month ago when it was US$390
mfbm.
When compared to the same week last year, when it was $515, that week’s
price is down -$120, or -23%. Compared to two years ago when it was $655,
that week’s price is down -$260, or -40%.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
KEY TAKE-AWAYS:
A major sawmill closure announcement pushed some buyers to find coverage
amid limited supply.
Sales remained at a slow-but-steady pace despite ongoing tight field
inventories.
Buyers continued to focus on immediate needs, filling inventory holes only.
To keep feeding just-in-time material to end users, secondary suppliers
replenished their own stocks from producers.
Mill offer lists were often slim, forcing traders to shop around for the
specific coverage they needed.
Many large retail customers step in recently to buy up bigger volumes of
discounted material.
Buyers continued to rely on the distribution network to furnish their
hand-to-mouth needs.
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