Market Recap: RISI Crow's Construction Materials Cost Index

A price index of lumber and panels used in actual construction for June 23, 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: Prices in the SPF lumber market remained solid and moved higher in several instances. “It seems sneaky strong,” was one eastern producer’s market assessment. With the AD determination looming and a CVD likely to take a hiatus prior to its final determination, buyers carried some degree of caution while approaching the market. Southern Pine prices continued to decline, many of them for the ninth consecutive week. Any rebound might be further delayed by Tropical Storm Cindy, which pushed onto land at midweek, delivering heavy rains to the Gulf States and further north. Upward price momentum increased in the Coastal species market. Traders reported good to strong demand, depending on the item, with green Doug Fir again leading the way. Sales of both dry Doug Fir and Hem-Fir occurred in great enough volumes to lift those prices moderately. Inland species experienced decent activity; however, it did not generally translate into stronger prices. The strength of Inland lumber showed clearly in Fir-Larch Select Structural lumber, as demand overrode supply and pushed these prices strongly higher. Stud prices remained firm to higher. Stronger demand for some items limited those supplies. Yards purchased in accordance with perceived needs without taking up a large position. Reports indicate that Radiata Pine Shop in the market has increased in volume. The demand for Shop has been good, however, pushing both 5/4 and 6/4 Ponderosa Pine to firmer levels. Most producers continue to show unchanged prices on 4/4 Ponderosa Common boards, but a couple of items have been reported at softer levels. Western Red Cedar buyers continued to purchase mixed loads in response to high prices, upcoming duty decisions and a need to fill inventory holes. Buyers considered the repercussions potentially stemming from the upcoming antidumping duty determination and the likely suspension of countervailing duties.

Panels: Buyers took a step back this week in the OSB market, but sources all agree that need for panel remains strong. Prices continued a mild strengthening trend. Purchasing remains on a needs-only basis. Most business is LTL, through some truckloads are moving in scattered markets. Southern Pine plywood pricing was largely stagnant in the wake of lackluster sales activity. While spotty volumes remained available for shipment the week of June 26, most producers reported lead times extending into the weeks of July 3 and 10. Western Fir plywood producers reported a “good, solid week” of sales. Buyers throughout the West and East were active. In response, prices moved higher, particularly in sheathing. Order files extending into the weeks of July 10 and 17 were typical. Canadian plywood activity went into a digestive mode this week after a strong run, though there is still need for wood throughout the system. Buyers eased off after prices jumped four points, passing the $500 mark, and order files moved out four to five weeks. MDF outperformed particleboard despite competition with imports. Order files for MDF extended well into the latter half of July, despite a slower pace noted by some western producers.

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