Market Recap: RISI Crow's Construction Materials Cost Index

A price index of lumber and panels used in actual construction for Feb. 23, 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

Tight truck and railcar availability remained a key driver in extending mill order files and once again propelling SPF prices higher. Holidays in the US and Canada restricted activity Monday, by Wednesday, buyers stepped in to purchase greater volumes.

• Southern Pine dimension prices remained mixed, but most moved higher. Exceptions occurred in both 2x6 and 2x10 across all zones, as producers struggled to sell production of those items. Yards throughout much of the Southeast reported good sales, aided by warmer temperatures. Severe weather in Texas limited sales in that state.


• Sales activity in the Coastal species market was strong enough to keep prices moving higher in many instances. Wintry weather in the West slowed consumption, but producers also reported weather-related issues restricting mill output.


• The pace of the Inland lumber market moderated over the past two weeks. But a number of factors worked to keep Hem-Fir prices slightly stronger and move Fir-Larch prices briskly upward.


• Good demand, transportation issues and tight availability continued to propel stud prices higher. An inability to increase production contributed to price strength.


• Radiata Pine industrials were unchanged.


• Most Ponderosa Pine industrial lumber items were reported to be stable in price. Mldg&Btr and 6/4 Shop showed no changes, with the Shop being the stronger item. Demand for 5/4 Shop, however, was reported to have enough strength for prices to push forward ten dollars. Ponderosa Pine Selects have moved up in prices, both C&Btr and D Selects. Commons were reported to be flat and are holding fast to established numbers.


• Buyers entered the Western Red Cedar market at “a steady pace” to secure volumes for future needs. Winter weather continued to restrict consumption in some areas of the United States, but buyers readied for spring sales by purchasing for shipments 30 to 45 days out in some instances.

Panels

OSB slowed significantly in the US Southwest and Southeast regions this weeks. Buyers repeatedly checked on orders. Shipments are weeks late in some cases, and a lot of volume is plugged up at mills and reloads for lack of railcars or trucks.

• Southern Pine plywood producers reported another active sales week. High prices and extended order files limited buyers’ willingness to place large-volume orders, but they continued to purchase, seeing strong takeaways from their yards. Traders reported seeing few imports entering East Coast ports.


• Western Fir plywood producers reported a “good” week of sales, although order files often remained in the weeks of March 12 and 19, where they were the week prior. Weather issues in the West hampered truck deliveries. The urgency in which yards checked on those shipments implied no significant buildups in their plywood inventories.


• Canadian plywood activity was mostly slow at the mill level, though there was a short spike Wednesday and Thursday. Snow in western Canada and wet weather in the East served to slow things further. Buyers busily checked and rechecked shipment status.


• Neither particleboard nor MDF markets showed any significant changes from the prior week. Those producers able to move the week’s production were satisfied with the volume sold, particularly in light of usual seasonal demand patterns.

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