RISI Crow’s Market Recap for July 27

A price index of lumber and panels used in actual construction for July 27, 2018.

Western: regional species perimeter foundation
Southern: regional species slab construction

Crow's Market Recap: A condensed recap of the market conditions for the major North American softwood lumber and panel products as reported in Crow's Weekly Market Report.


Lumber

The long grind downward remained in place in the SPF market. Yards continued the process of drawing down inventories and filling in holes where necessary. Annual mill shutdowns in eastern Canada did little to stave off market weakness. Traders watched for any relief that could come from wildfires or an upturn in lumber futures but found none.

• Southern Pine demand continued to lag mill output. Consequently, prices pushed lower. Not yet seeing any hint of a strengthening market, buyers remained determined to purchase only near-term needs. Yards reported good sales and replenished at a steady, conservative rate.


• Discounting in Coastal species picked up momentum, generating deeper discounts than in prior weeks. The market offered buyers a range of quotes as a result of heightened urgency among mills to move product. Mills approached the market aggressively early and continued to lower prices throughout the week.


• Inland lumber producers reported another week of declining prices. Reports have buyers standing aloof from the market, waiting for a clear signal that the bottom has been reached.


• Wide price ranges typically found in a market in search of trading levels remained in play among many stud items. The difference between this week and the week prior were the depth of those ranges. Discounts of $50 were more prominent as mills sought sales more aggressively.


• Good Ponderosa Pine inquiry exists for both 5/4 and 6/4 Mldg&Btr, and #2 Shop is active in both thicknesses, as well. Ponderosa Pine Selects and Commons have taken on some new life in recent weeks because of the hard fall of dimension lumber.


• Western Red Cedar producers reported little change in their market. Hot weather in a few consuming areas, such as Texas, continued to constrict consumption, although sales out of yards in that state remained good. The Midwest was active, with producers reporting solid sales to those customers. Buyers in the West purchased steady volumes.

Panels

Almost a repeat of last week, OSB markets were very cautious with another round of steep price cuts. Producers made deals under established levels to try and move files, but distribution resisted, more interested in clearing out inventories.

• Any Southern Pine plywood mill’s modest increase in sales was cancelled by another’s minimal decline. Consequently, prices continued to fall across a wide array of products. Buyers waited until the last minute to buy and wanted their orders to ship “yesterday,” according to one source.


• Sheathing prices in the Western Fir plywood market remained weak and continued to drift lower by single digits. Although production has outpaced demand for several weeks now, traders took some solace in knowing their market has held up better than others.


• The tone was generally cautious again in Canadian plywood, although some reported quiet deals and wondered if the market was coming close to a turn. Producers reported a slight but noticeable uptick in sales Thursday.


• Particleboard and MDF producers reported somewhat steady sales activity, with adjustments in demand minor. A few particleboard producers experiencing early July slowing noted their order file has again filled in. Some laminators in the West backed away from the market, but other segments were reported to be ordering with regularity.

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