Market Recap: RISI Crow's Construction Materials Cost Index

A price index of lumber and panels used in actual construction for March 31, 2017.

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 sales eased early, giving producers little incentive to raise quotes much above the prior week’s market price levels. Order files extending as far out as mid-April underpinned pricing. Thursday, mills and secondaries reported increased interest among their customers to again step in to purchase. The Southern Pine market continued to show some of the strength that originated the week prior. Disproportionate demand for specific items left price increases uneven. Coastal species lumber pricing was firm to mildly higher. Some buyers looked for the occasional month-end deal, but discounts were not abundant. Producers experienced an uptick in demand in the latter half of the week. Inland lumber markets continued to show the kind of strength expected of early spring. Price increases marked most of the items in both Fir-Larch and Hem-Fir. Stud pricing was a highlight across lumber markets. Prices increased $5-10 in most instances. Good demand across the spectrum of items and strong order files helped propel prices higher. Radiata Pine Shop from New Zealand is not apparently available, although buyers are looking for it. The primary Ponderosa Pine industrial item being sought by buyers is 5/4 Shop. That demand has been sharply focused on #3 Shop and P99 for some time, but demand for #2 Shop is showing little more life. Strength in Ponderosa Pine boards is no longer limited to the lower #3 and #4; it has also shown in the stronger demand for #2, as home center activity has increased. Idaho White Pine is very thinly available; major production will not appear again until May. Western Red Cedar producers voiced concerns with potential logging issues and the high price of their products. Uncertainty with near-term log supplies prompted a cautious approach to sales and the higher lumber prices go, the more producers show concern over losing market share.

Panels: OSB perked up over the week, with activity strengthening as we move into spring and the market is perceived underbought. Mills are firm on pricing and pushing higher numbers. Southern Pine plywood demand picked up enough to limit any severe discounting that had plagued the market in recent weeks. Stronger sales allowed some producers to elevate quotes as the week progressed, but overall market pricing held close to prior levels. Spotty sales early in the Western Fir plywood market gave way to an uptick in buying Thursday, helping producers move order files more solidly into the weeks of April 10 and 17. Strength continues to define Canadian plywood markets, although there was a quieter tone this week after last week’s run. Many of the market players were at the Montreal Wood Convention. Pricing is currently a “strong” sideways. Particleboard mills in both the East and West have expressed varying levels of improved business over the past couple of weeks. It is not the strong increase, however, that both producers continue to anticipate. MDF across North America continued to sell at a good pace.

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