Market Recap: RISI Crow's Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Nov. 22, 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
A plummeting January futures contract kept SPF buyers on the sidelines, prompting one trader to note, “Futures is speaking loud.” Mill order files well into December generated no incentive to lower prices. Eastern producers sought sales at lower price levels.
Southern Pine mills experienced good sales activity through Tuesday, but expected a slower pace Wednesday. Upward price pressure persisted in narrow widths. Wide width increases were sparse, with 2x10 and 2x12 sometimes discounted to sell excesses.
Coastal species producers experienced solid demand for a holiday week. Truckload volumes were preferred as buyers purchased hand-to-mouth heading into the holiday season. Lower priced carloads out of Canada were noted. Supply-side issues remained a concern among traders.
Inland lumber was reported to be fairly stable. Most producers said they did not accept counters, reporting generally firm prices. Some slippage did show in Fir-Larch 2x4 and 2x6 #2&Btr, but Hem-Fir 2x4 showed a gain of $5.
Western SPF stud producers struggled to move limited volumes while mills in eastern Canada sold at the prior week’s price levels or discounted where necessary. Producers and secondaries often cited recent steep declines in futures as a reason for limited sales activity.
Some sellers are discounting Radiata Pine Mldg&Btr.
Ponderosa Pine industrial lumber has tightened in the last several weeks, although buyers report that they are finding adequate supplies. Buyers are taking a high percentage of what is being offered in both 5/4 and 6/4 Shop. Ponderosa Pine boards continue to show “not much excess,” according to one source. Demand has slowed over the last several weeks, causing mill files to shrink modestly, but prices have generally been stable.
Western Red Cedar buyers filled in inventories to maintain limited inventories heading toward year-end. Others stepped in to purchase volumes for delivery the first quarter. Canadian mills continued shipping volumes across the border to reloads prior to duties.
Panels
OSB pricing continues to lose ground this week, as markets try to find a bottom. Mill-level numbers are off as much as $28, while delivered prices fell as much as $25. Hand-to-mouth buying is the norm.
Sales activity in Southern Pine plywood was modest. Deep rated sheathing discounts mixed more moderate price cuts. Wholesalers reported difficulties selling at exceedingly low price levels. Prompt rated sheathing was available, and producers discounted to nail down what few sales transpired.
Western Fir plywood producers looked for sales while buyers showed little enthusiasm for purchasing. Monday was often the peak of activity for the week. When necessary, buyers purchased prompt shipping volumes and checked on placed orders frequently.
Little change occurred from last week in the Canadian plywood market, with pricing unchanged. Buying is being done as needed, and most order files are out in the week of December 4 through Dec. 11.
Sales activity in particleboard and MDF markets were described by one producer as, “What you might expect.” Others echoed those sentiments after entering the week with modest expectations. Buyers continued to fill out their needs for December delivery at a decent pace.
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