The frenzied tone of lumber sales attenuated in most product categories.
Supply remained tight as a drum and prices were firm or up.
Due to ongoing restricted supply, prices continued their upward trend of the
past month or so.
Producers looked toward the usual seasonal Holiday downtime as they made
their manufacturing plans to end the year having sold out of any remaining
inventory; the usual practice for year-end.
For their part, customers continued to buy only the wood they needed for
ongoing projects. All eyes were on January 2025, with a general consensus
that business would continue to pick up. The strategy at sawmills was to
manage order files toward
mid-December, in time for Holiday closures, while keeping prices generally
moderated. Some specialty item production was starting to book for early
next year.
In the week ending Nov. 15, the price of benchmark softwood lumber item
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$460 mfbm. This is up $16,
or four per cent from the previous week when it was $444. That week’s price
is up $57, or 14 per cent from one month ago when it was $403.
Compared to the same week last year when it was $404 mfbm, that week’s price
was up $56, or 14 per cent. Compared to two years ago when it was $490, that
week’s price was down $30, or six per cent.
In the week ending Nov. 15, the price of Southern Yellow Pine East Side 2×4
#2&Btr KD (RL) was $435 mfbm. This is down $25, or five per cent from the
previous week when it was $460. That week’s price is down $30, or six per
cent from one month ago when it was $465.
When compared to the same week last year when it was $405, that week’s price
was up $30, or seven per cent. Compared to two years ago when it was $455,
that week’s price was down $20, or four per cent.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
KEY TAKE-AWAYS:
Producer order files were extended to early-December.
Demand weakened slowly, but was still well-ahead of scanty supply.
Sawmills felt no urge to be aggressive, and buyers were content to sit on
the sidelines.
Sales lead times were in the three- to five-week range.
Positive moves in lumber futures underscored the buoyant tone in business.
Southern Pine prices continued to correct after rising higher than the
market could bear.
SYP suppliers without on-ground inventory had to entertain significant
counteroffers.
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