Market Recap: RISI Crow's Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Dec. 15, 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
Activity was dull early, forcing SPF mills in both eastern and western Canada to lower prices in an attempt to ship volumes prior to the implementation of duties around the year’s end. Activity improved notably Thursday as futures contracts gathered some moderate steam.
Southern Pine mill sales were flat and most #2 prices declined. Snow and colder temperatures over the weekend slowed consumption in a large area of the Southeast. Inventory levels at yards were managed proportionate to a more pedestrian pace of sales.
Supplies available to buyers influenced Coastal species pricing. Green Doug Fir demand, although not robust, again outpaced production, boosting those prices moderately. Greater dry availability in both Doug Fir and Hem-Fir placed downward pressure on those prices.
Inland lumber producers reported some radical price changes in Fir-Larch, based on aggressive selling by Canadian sellers. Hem-Fir was less vulnerable. US producers reported that they were accepting a few counters “that made sense” and passing on any volume stuff at deeper cuts.
Stud supplies available to the marketplace remained a key component to price direction. SPF mills continued to struggle with an imbalance between supply and demand. Western US mills again struggled with log availability, constraining output.
Radiata Pine lumber was unchanged in either Mldg&Btr or Shop.
Ponderosa Pine industrials remained in good demand, especially Shop, both 5/4 and 6/4. Price levels of both Mldg&Btr and Shop were unchanged. Ponderosa Pine Selects and Common slowed in recent weeks, but demand remained sufficient to allow producers to hold prices close to recent levels. Mills showed good order files, having taken as many orders as they felt reasonably comfortable.
Canadian Western Red Cedar producers were busy shipping lumber across their southern border – some of it sold and some not. Mills stuffed as much wood into US reloads as possible while some reported minimal takeaways from those yards.
Panels
OSB markets firmed this week, although buying patterns were to cover needs only, as inventories are being carefully controlled approaching year-end. Bleeding on the pricing front stopped everywhere but in Eastern Canada, where producers are still trying to move wood.
Southern Pine plywood producers sold moderate volumes. Order files extended into the Christmas week and first week of 2018. Rated sheathing pricing was steady, with any adjustments minor. Buyers looked for the quickest shipping volumes to deliver before holiday downtime at yards. Others purchased for delivery after the first of the new year.
Western Fir plywood mill sales occurred at a “good” and steady rate, considering the time of year. Mills reported order files extending into the weeks of December 25 and January. Buyers reported little if any discounting among producers.
Canadian plywood activity started quiet, but then took flight midweek and was still hot by midday Friday. A few buyers stepped in and bought some volume, which led others to do likewise. Order files and prices leapfrogged amid much excitement.
Particleboard and MDF sales slogged into the year’s end, with activities described frequently as “typical for this time of year.” Some producers continued to schedule maintenance and downtime in line with customers’ needs.
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