By Madison's Lumber Reporter Customers who had
been waiting on the sidelines since spring to
see how far down lumber prices would go returned
to the scene and booked significant purchases in
the week before the Labour Day long weekend.
Sawmills gleefully extended order files as
secondary suppliers — who had been running on
lean inventories themselves — did not
necessarily have specific items on hand to sell
on the spot. Construction projects which had
been put on hold roared back to life as builders
rushed to complete them before winter starts.
Continuing gains from the previous week, for the
week of Sept. 3, 2021 the price of Western S-P-F
2×4 #2&Btr KD (RL) was US$430 mfbm. This is up
by +$10, or +2%, from the previous week when it
was $420. That week’s price was down by -$17, or
-4%, from one month ago when it was $447.
The unspoken consensus that a price bottom had been reached was apparent
from sawmills all the way to purchasers.
“Most players agreed prices had generally hit bottom, though the real
proof will come post-Labour Day.” — Madison’s Lumber Reporter
There was more energy to Western S-P-F sales according to veteran
traders in the U.S. One large sawmill apparently had turned to
offshore markets, selling virtually their entire September WSPF
inventory. Sawmill order files ranging between one and three weeks
were reported; however were producer- and item-dependent.
Canadian Western S-P-F sales were marked by a tone of cautious
expectation, with all eyes on the imminent Labour Day long weekend
and the pace-setting effect it usually has on solid wood
commodities. Buyers continued to focus on short-term volumes to keep
their inventories from total depletion as they tried to predict
where price levels will end.
“Monday started off with a bang again for Canadian Eastern
S-P-F sales as volumes improved, prices continued to firm up, and
most counter-offers were rejected by sawmills. With each passing day
more buyers decided to jump into the fray as they sensed the market
changing direction, thus attempted to get in at or near the price
bottom.” — Madison’s Lumber Reporter
When compared to the same week last year, of $966, the price of Western
S-P-F 2×4 for the week of Sept. 3 was down by -$536, or -55%. Compared
to two years’ ago when it was $370, that week’s price was up by +$60, or
+16%.
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