Market Recap: RISI Crow's Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Sept. 8, 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
The quest by SPF buyers to replenish thin inventories continued. Sales activity following the long holiday weekend started immediately where it left off, eventually pushing mill order files out into early October in some instances. Producers welcomed price increases, in part due to significant strengthening of the Canadian dollar during the week.
Momentum from the week prior carried over after the holiday and increased, as Southern Pine lumber buyers pressed harder to cover needs. The significant move to replenish inventories depleted in August prompted #2 price increases of $5-15.
Coastal mills with consistent volumes of lumber to sell reported solid sales activity. That and limited supplies available at other mills generated higher pricing across most dimension lumber items. Wildfires persisted throughout the West.
Demand for Inland lumber species strong. Solid activity in both Fir-Larch and Hem-Fir in all Std&Btr/#2&Btr lumber, Select Structural and MSR.
Stud prices maintained a firmer stance and managed to make moderate gains in some cases. With the CVD-free period now firmly in place, buyers discounted any potential effects it will have on the market. Some additional attention was directed to the West, where wildfires limited log availability and sawmill production.
Radiata Pine is more than amply supplied for domestic solid lineal moulding producers.
Ponderosa Pine Mldg&Btr and Shop is quite stable, although some reports indicate more than ample supplies of 5/4 #3 Shop. Ponderosa Pine 4/4 Selects and Commons showed “stable but muted activity.” The market did not regain any special energy, as it often does following Labor Day.
Western Red Cedar sales activity was lackluster coming off the long holiday weekend. Buyers continued to purchase immediate needs without extending purchases too far into October. Prices remained a concern among buyers, and as the year progresses, potentially persistent high prices are likely to cause further consternation.
Panels
In the aftermath of Hurricane Harvey and with the impending landfall of monster Hurricane Irma, OSB markets went into further disarray this week. As Irma intensified and drew a bead on Florida, numerous producers got spooky and went off the market. Order files moved out generally to the first week of October, with some in Sept. 25 and others Oct. 9.
Storm-related buying in the Southern Pine plywood market increased as Hurricane Irma spun its way toward Florida. Traders noted the table had been set for such a market run after buyers limited their purchases and maintained low inventories.
Western Fir plywood demand hit another gear after prices firmed and edged higher the week prior. Hurricanes in the South and wildfires in the West contributed to the momentum.
Canadian plywood markets continue to derive their strength from low inventory levels and a promising fall buy. Some discounting was done – enough to push order files into the week of September 25 and some into October – but by week’s end, producers were resolutely back to previous levels.
Buyers of particleboard and MDF returned to their normal routine after the long holiday weekend. Some replenished while others worked down inventory purchased prior to the close of August. Producers reported no significant increases in sales activity.
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