RISI Crow’s Market Recap for March 30

A price index of lumber and panels used in actual construction for March 30, 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

SPF buyers entered the market in greater numbers to replenish inventories after limiting purchases for several weeks and awaiting deliveries on late shipments. Many traders returned to their desks after the prior week’s Montreal Wood Convention. Railcar struggles persisted at some mills.

• Southern Pine lumber prices continued to decline, most falling $10-15. While mills sold decent volumes, buyers held off when possible, expecting further price erosion. All widths in upper grades exhibited weakness.


• Increased Coastal species market activity bolstered some prices early while others languished. Both dry and green items felt as though they established better footing, but not all items garnered a firm grip.


• Inland lumber markets experienced what one source termed a “progressively active week.” Early-week action was muted, but the positive effect of futures, combined with the inevitable lemming effect among buyers, led to solid progression in demand.


• After a number of traders returned from the industry gathering in Montreal the prior week, demand for studs improved significantly. Firming and rising prices were not just found in SPF or 2x4 9’, but most other items as well. Futures gains throughout much of the week helped motivate traders to participate even more.


• Ponderosa Pine Mldg&Btr and Shop lumber reflected some of the laggardly tone of mouldings and millwork. Prices adjusted very little in the Shop items, but Shop remained considerably more active than Mldg&Btr. Ponderosa Pine boards were still not comfortably available. At this point, with availability limited, producers were keeping their prices fairly tight. Selects continued to be very stable, showing no changes among mills that brought new stock to market.


• Producers of Western Red Cedar continued to sell at a steady clip. Buyers replenished and continued to bolster inventories for second quarter sales. Several producers noted they had little wood to sell for the month of April shipment. Some had none.

Panels

Following a mill breakdown in the US South last week, sagging OSB prices popped back up and continued gains this week, although activity calmed. Eastern producers continued serving western zones, as western Canadian mills are largely OTM.

• More Southern Pine plywood producers felt increased pressure to move quick shipping volumes at lower prices. Mills sold carload volumes at considerably lower price levels. Westside producers were most prone to the deep price cuts, trying to move carloads to both Pacific and Atlantic Coast states.


• After some improved sales activity at the mill level late the week prior and early this week, Western Fir plywood mills firmed quotes and even bumped them higher in some instances. The pace settled down for much of the remainder of the week, leaving a lot of CDX prices somewhat flat. Most mill order files extended only into the week of April 9.


• Canadian plywood markets grew busier as the week progressed, and producers pushed order files out. The market is firm and picking up interest going into the spring building season.


• Particleboard producers continued to report sporadic sales activity from week to week. Heading into April, producers expected demand to improve by now.


• MDF supplies remained tighter than particleboard, as distributors continued to replenish.

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