Market Recap: RISI Crow's Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Jan. 19, 2018.
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
SPF prices continued to escalate, with 2x4 #2&Btr out of western mills surpassing the previous record high set in November last year. Order files extended out into the weeks of Feb. 5 and 12 also contributed to the more hesitant approach a few traders noted. Railcar availability remained a significant problem as buyers awaited late shipments.
Sales activity remained strong in the Southern Pine market. Despite another shot of cold temperatures, snow and ice in Southeast, yards continued to report “good sales.” Cold weather forced mills to shut down or operate at a fraction of their capacity, giving no relief to an already tight supply.
Coastal species producers sold at a strong pace, sending several prices considerably higher. Urgency among buyers to find necessary tallies was met with limited availability at mills. Order files extending into early February often prompted mills to raise prices more aggressively.
Inland lumber producers reflected the attitude of a colleague, who said, “The beat goes on.” Strong demand, coupled with very tight log supplies, created a market that pushed upward in prices of both Fir-Larch and Hem-Fir.
Stud pricing remained strong, ranging from firm to up sharply. The largest upward price moves existed in 9’, where the least availability existed. Limited log availability remained a barrier to production.
Radiata Pine remained solid and stable in price.
Ponderosa Pine industrials continued to reflect good demand in both 5/4 and 6/4 Shop, especially #3 Shop and P99. In boards, demand continued to push upward on prices, particularly in Ponderosa Pine. California and Inland Selects made strong price moves.
Any changes in the pace of sales activity in the Western Red Cedar market were minimal. Buyers continued to replenish with mixed loads whenever necessary and purchase some items for later in the first quarter or early second quarter delivery. Some producers focused more of their attention on building inventory for spring sales.
Panels
OSB markets gathered more momentum this week, as mill and distribution sources noted good activity in most regions. Buying picked up, order files moved out a week or two, and prices moved up slightly at most mill and delivered levels.
Cold temperatures, snow and ice wreaked havoc with the Southern Pine plywood market. Producers often shut down mills in the middle of the week while the cold slowed production at those that continued running. Nevertheless, demand remained relatively strong, pushing prices higher.
The pace of sales in the Western Fir plywood market eased a bit from the prior week, but mill order files continued to move out further into February. Mills exited the market at various intervals, trying to assess their positions and keep order files in check.
Canadian plywood markets were crackling with excitement after activity picked up and ran hard midweek. Prices and order files lurched ahead, driven by log shortages and transportation issues.
Some particleboard and MDF producers reported marginally improved sales activity. Others described steady sales and no notable increase in demand. This kept order files at a somewhat comfortable distance for producers and their customers. Prices held.
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