Market Recap: RISI Crow's Construction Materials Cost Index

A price index of lumber and panels used in actual construction for April 14, 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: What SPF producers had left to sell for shipment in the month of April sold readily. The potential for lighter than expected duties, skyrocketing cash prices, plummeting lumber futures and the approaching need for mills to sell May wood generated caution among buyers. Double-digit price increases remained a fixture across most Southern Pine #2. Steady price hikes generated caution among buyers, but nice weather and subsequent field demand continued to send buyers into the marketplace. Coastal species pricing continued to climb due to persistent demand. Buyers expressed some objections to participating at the current price levels, but sales activity warranted those purchases. Inland producers reported the market to be “extremely busy,” citing consistent calls and sales throughout the week. Both Hem-Fir and Fir-Larch showed solid price advances, and sales are being made across a wide spectrum of buyers. Stud prices remained on a strong upward trajectory. Limited offerings from Canadian SPF producers provided producers of other species with additional sales activity. The situation in Radiata Pine does not yet appear to be on the verge of change, and prices remain reasonably stable. Ponderosa Pine prices for #3 Shop and P99 are significantly firmer. Demand for this material remains strong, as moulding and millwork producers struggle to find sufficient material to cover needs. Ponderosa Pine Selects and Commons are very active, moving well and pushing upward in price. Price movement is restricted to the Common boards, with Selects remaining firm but unchanged. Prices in ESLP have also shown good strength, as buyers have increased demand for that species. Idaho White Pine is largely absent from the current market, and Eastern White Pine is firmer in Industrial grade. Traders anxiously awaited the approaching decision on duties expected April 24 from the US Department of Commerce. Buyers again scoured the market for coverage.

Panels: Following last week’s breathless run-up in OSB pricing and demand, momentum carried through until midweek with further spikes in the numbers. By Wednesday, market players took a breather and stepped back from the fracas. Any lingering softness in Southern Pine plywood pricing last week, evidenced by moderate discounting in a few instances, disappeared this week. The market experienced less activity late in the week, with many traders leaving their offices early Thursday, prior to Good Friday. Western Fir plywood producers reported a good week of sales, spurred in part by a major producer’s exit from the market for most of the week. Sheathing price increases were strong. The momentum in Canadian plywood activity carried over to this week, then quieted as participants took Friday off for the holiday. Order files moved solidly into the week of May 8 at all mills, and some are almost out for that week. The potential for any uptick in particleboard or MDF demand expected early in the year is gradually “fading away.” Producers continued to note little change in their customers’ approach to the market. Producers reported sluggish sales at the end of the week, prior to the Easter weekend.

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