Market Recap: RISI Crow's Construction Materials Cost Index
A price index of lumber and panels used in actual construction for Feb. 16, 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 sales continued at an overall steady pace, maintaining upward pressure on prices. Although slower than sales activity in January, producers continue to keep order files extended, this week selling at least through February, with several lead times extending into the weeks of March 12 to 26.
Southern Pine lumber buyers saw more availability on mill lists early. Mill offerings for shipment within a week grew, and discounts in 2x6 and 2x10 appeared as producers tried to move off excesses. Meanwhile, 2x4 and 2x8 supplies remained tighter than other widths, propelling those prices higher.
Coastal species lumber pricing continued to gain, as mills managed to again sell strong volumes to buyers awaiting a correction in the market. Mill order files remained strong.
It was “a more moderate week” in Inland lumber activity. Even so, Fir-Larch #2&Btr lumber showed solid price gains. Mill order files pulled back slightly from recent lengthy delivery dates. Hem-Fir lumber was much less aggressive but showed a couple of $5 gains.
Pricing across stud markets continued to climb, but momentum eased a bit from prior weeks. Western species prices continued to gain overall, but a few spotty discounts were evident. Canadian mills owed their extended order files in some part to railcar shortages.
Radiata Pine was stable as to price, but log prices in New Zealand have set new records regarding exports; China was noted as the driver of this phenomenon.
Ponderosa Pine Mldg&Btr and Shop continued to show reasonable demand, enough to maintain firm prices. The strength that developed in Ponderosa Pine Selects and Commons remains, although the pace of activity is moderate. Some producers have begun new runs of Ponderosa, which will come to market shortly.
Market drivers in the Western Red Cedar market again led to firm pricing. Sales activity continued at a solid pace for February. Mills sold out into April in some instances while others maintained order files into early March.
Panels
OSB markets slowed a bit this week at the mill level. Buyers are exceedingly nervous about late loads and worsening transportation issues. Mills are running out of storage space and reloads are packed waiting on trucks and railcars.
Southern Pine plywood sales activity eased, but producers continued to sell decent volumes. High prices generated some hesitancy among buyers, prompting a more measured approach to the market. This kept prices from increasing as sharply as in prior weeks.
Western Fir plywood demand remained strong, with buyers coming back into the market to cover needs more fervently in the latter half of the week. Good sales volumes enabled mills to extend order files out into the weeks of March 12 and 19.
Canadian plywood activity at the mill level continued taking a breather this week. Lengthy order files triggered reluctance. With shipments three to seven weeks late, buyers frantically checked and rechecked delivery status this week, fraying nerves.
Changes were generally minor in both particleboard and MDF markets. Appreciable gains in activity across any sector of the marketplace were nonexistent. Instead, increases in demand expected over the next several weeks continue to come in small increments.
For more on RISI, click here.