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Market Recap: RISI Crow's Construction Materials Cost Index

2/16/2016

A price index of lumber and panels used in actual construction for Feb. 12, 2016 


*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: Trading activity decelerated in the SPF market; nevertheless, many prices garnered moderate increases. Buyers continued to purchase decent volumes, bolstering order files extending as far out as the first few days of March. Southern Pine producers reported a slower sales pace than the week prior, some citing harsh weather as the reason. Lower call volumes did not stop most prices from moving $5 to $10 higher, especially in wider widths. Pricing strengthened and continued to move higher in the Coastal species market. Mills attained price increases of around $10 for many items. Better weather in California spurred some additional buying. Inland lumber activity has improved over the last two weeks for most producers, but that improvement has not come in most prices. Better phone action, coupled with a better projection for construction, has left a more positive stamp on the market. Stud pricing remained on firm footing, and many prices continued to make strong gains. Tight supplies, lead times extending into early March and solid demand all contributed to higher prices. Downtime at two eastern Canadian stud mills played a role in limiting availability. Radiata Pine shows no substantial change in Mldg&Btr prices: New Zealand 5/4 and 6/4 are both pushing up as the force of pruned log buying demands. Ponderosa Pine Mldg&Btr and Shop prices remain stable, some sources saying that both Mldg&Btr and #2 Shop are a little tight. Ponderosa Pine #2 Common board prices made $5 to $15 gains, depending on the items involved. The narrows have been most attractive. Western Red Cedar fell into the same pattern it has experienced over the past several weeks. Yards continue to take shipment on previously purchased volumes and sell at a good rate overall, depending somewhat on seasonal conditions in particular regions.


Panels: OSB pricing hit what market players considered a “bottom” during the past week, which, coupled with improved weather in the U.S, stimulated a round of buying. Once prices firmed, producers became bullish with quotes. Sales activity in the Southern Pine plywood market was lackluster, leading to few price adjustments. “A flat week,” was a common depiction of the market. Most mill order files fell into the week of Feb. 22, with more limited volumes sold into Feb. 29. Moderate sales and solid order files left Western Fir CDX market prices near levels established the week prior or slightly higher. Demand was somewhat mixed, depending on the customer and their location. Many of the sources talking the Canadian plywood market up early this week pulled in their horns, again calling the direction sideways. While volumes were reported selling at a point over Crow’s net, it was not enough to move the needle. Particleboard producers reported good sales, allowing them to maintain order files. Mills reported good call volumes from distributors. MDF imports were one of the chief concerns among domestic producers. During the week, most domestic MDF producers reported at least “decent” sales activity.


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