By Madison's Lumber Reporter
As May rolled into June and following the dual
long weekends of Victoria Day in Canada and
Memorial Day in the U.S., lumber prices remained
flat like they had been the previous week.
However, rumblings emerged which suggested
prices might be going down soon. The main
indication of this was order files at sawmills
which were shrinking from approximately four
weeks down to two weeks. Customers sensed a
slight change in the supply-demand balance and
thought it was worthwhile to wait before
ordering more wood, in case prices actually did
fall. As with the previous couple of weeks,
sales volumes were quite small because only
those who really needed a few sticks of specific
commodities did make purchases.
There is word out of the British Columbia
Interior, which will be the same for the Pacific
Northwest of the U.S., that the forests are
“tinder dry”. Even if there are not wildfires,
the fire ban will go into effect sooner rather
than later. This prevents heavy equipment from
going into the woods, and stops trucking in and
out of the forest. At this moment, the sawmills
are loading up with logs as much as possible in
order to have the feedstock they will need to
run lumber through the summer.
“While demand took another step back, WSPF prices were
flat to slightly up and many ESPF items corrected down marginally.” —
Madison’s Lumber Reporter
Western S-P-F purveyors in the U.S. related a much slower week overall
as players sick of the topsy-turvy lumber game absconded for an extended
Memorial Day holiday weekend. Bread and butter prices nudged up by $10,
but most dimension items remained flat from the previous week. Sawmills
reported order files into the second week of June for dimension
offerings and into the third week for studs. Much of the week’s sales
activity occurred at secondary suppliers, as wholesalers and
distributers often had lower prices and quicker shipment available.
Canadian Western S-P-F producers reported an undercurrent of good
takeaway amid the overall pullback in demand. The buying frenzy of
previous months was gone but sawmills did not expect prices to come off
in any serious measure going forward. Demand for #2&Btr dimension and
#3/Utility 2×4 R/L remained robust, while that for six inch #3 and for
#4/Economy were softer, according to sellers. Log decks were still in
good shape for the time being while rail car supply continued to be a
struggle.
Prices remained flat on almost all items for the week ending May 27,
2021 as benchmark softwood lumber commodity item Western S-P-F KD
2×4 #2&Btr wholesaler price remained at US$1,640 mfbm, once again.
That week’s price is up by +$23, or +1%, from one month ago when it
was $1,618.
“Eastern Canadian producers held their #2&Btr lumber
prices flat or discounted between $10 and $55. According to traders,
sawmills had trouble selling at lower numbers as buyers were
extremely cautious after seeing this latest sales pause extend
another week.” — Madison’s Lumber Reporter
Compared to the price one-year-ago, when it was US$378 mfbm, for the
week ending May 27, 2021, the price of Western S-P-F KD 2×4 was up by
+$1,262, or +334%.
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