Market Recap: RISI Crow's Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Jan. 26, 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
Sales activity at SPF mills notched lower as more buyers stepped away to digest or turned to secondaries to fill needs. Mill order files stretching into the latter half of February influenced buyers’ decisions. Mills raised quotes little after early increases.
Southern Pine traders reported a mix of customers scrambling to cover needs while others digested prior purchases. Sales activity at the mill level remained good, and order files extending two to three weeks, or even longer in some instances, kept upward pressure on prices.
Coastal species prices maintained their upward ascent. Some significant price spreads between mills remained in play. Buyers purchased the occasional carload or maxi truckload at significantly higher levels. Although some producers noted a slightly slower sales pace, limited supplies and strong order files provided ample strength.
Inland lumber producers were “flat out busy,” according to one industry guru, representing a solid consensus among Inland mills. Some producers pushed hard on prices near the middle of the week, attempting to slow the demand to some degree. Failing in that tactic, they raised prices further.
Stud sales remained strong, and prices continued to gain. Any exception to strong sales was usually found in 2x6 8 feet. Meanwhile, ample strength in 2x4 9 feet persisted.
Radiata Pine industrials come with a caveat: anyone wanting Shop must take a specified volume of Mldg&Btr.
Ponderosa Pine industrials were reported strong in both 5/4 and 6/4 Shop, with buyers continuing to call producers regularly to assess availability. Ponderosa Pine Selects were stable and priced firmly. Commons, on the other hand, showed some availability to traders who had not been able to source them in any volume for some time.
No notable increased or decline of sales activity was reported in the Western Red Cedar market. Some producers continued to press prices higher with some success. Reports of buyers’ resistance to the higher prices were mixed.
Panels
The pace of OSB activity accelerated this week as producers went on and off the market, transportation issues persisted, and order files moved out. Prices lurched ahead by double digits, and the intensity of buying picked up with dealers looking towards the spring and bullish building permit numbers.
Most Southern Pine plywood traders reported brisk sales, prompting mills to raise prices more aggressively while maintaining lead times of three to four weeks. Mill sales volumes increased from prior weeks in most instances as yards came back in to replenish inventories. Wholesalers were also active.
Sales activity was strong in the Western Fir plywood market. Producers extended order files into the latter half of February, with some lead times stretching into early March. A wide range of buyers participated.
Canadian plywood saw another exciting week as buyers grabbed up whatever was available and followed price increases unflinchingly all the way. Order files are out as far as 10 weeks.
Particleboard and MDF markets continued to show modest signs of improved sales. Buyers participating minimally in the market earlier this month came back in to place orders consisting of a little more volume. Even though order files are not extensive, buyers often looked for quick shipping volumes.
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