RISI Crow’s Market Recap for May 4

A price index of lumber and panels used in actual construction for May 4, 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 urgency to cover needs increased among SPF buyers as availability at mills declined. Strong price gains and limited mill offerings were sources of frustration for many buyers. While some producers sold out items through the month of May, others maintained shorter lead times by going off the market at various intervals.

• Southern Pine lumber buyers approached the market with an abundance of needs and purchased accordingly. Strong sales out of retail and distribution yards prompted steady replenishment. Tighter supplies at mills and secondaries needing to place orders generated a more frenetic tone.


• Availability among many Coastal species lumber items tightened further, placing increased upward pressure on those prices. Some producers reported lead times extending into late May.


• Inland lumber producers offered several reasons why this became a watershed week for lumber pricing. Noting that Canada’s inability to ship their entire production into the US no longer provides the buffer that previously existed.


• Demand for studs remained strong, setting the stage for a mix of firm to significantly higher prices. After a strong beginning to the week, availability declined as mills went off the market at various intervals. Some came back on quoting considerably higher, defensive levels.


• New Zealand Radiata Pine activity has accelerated dramatically in recent months, but not to the United States.


• Ponderosa Pine Mldg&Btr and Shop have shown little price change in many weeks. Modest pressure on prices did little to push numbers upward, but lack of significant volume kept prices from depreciating. Ponderosa Pine Selects remained essentially on hold with regard to prices. Commons, however, were “Still hit and miss,” according to one source. A primary reason for this was still the lack of desirable tallies.


• Activity remained steady to improving in several Western Red Cedar consuming regions. Better weather in the Northeast and Upper Midwest generated mildly improved takeaways from retail yards and home improvement stores. Retailers sought coverage from distributors after selling packages they refuse to carry in inventory.

Panels

The waiting game continued this week in OSB markets; however, by Friday morning, some buying activity picked up in the United States. Southern markets saw the most activity, responding to a bump-up in retail takeaway and an unexpected week-long shut at a major mill.

• Buyers continued to purchase Southern Pine rated sheathing at a pace exceeding the available supply. A wide range of customer sectors participated. Wholesalers seemed particularly active, confident in at least the market’s near-term prospects.


• The Western Fir plywood market continued to gain a degree of momentum. Producers sold improved volumes and managed to extend lead times further. Prices improved as a result, and carload volume discounts dissipated. Traders reported improved confidence throughout the market.


• Canadian plywood activity was mellow this week but showed growing signs of strength Friday. Western activity was stronger than eastern. Mills are firm on price, having rebuffed counters under established levels.


• Both particleboard and MDF markets remained active, with steady to slightly improved sales most often the result. A few particleboard mills in the West experienced a relatively significant increase in sales. Producers seemed somewhat content with order files extending into the latter half of May.

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