RISI Crow's Market Recap
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: Pricing in the SPF market began to firm early as producers sold surpluses and extended order files. A week of mostly up-limit moves in futures helped motivate buyers. Wednesday’s state of emergency announcement by British Columbia in response to numerous wildfires in the province drew a lot of attention.
Buyers entered the Southern Pine lumber market in higher numbers and purchased greater volumes. Mills cleaned up some of their largest excesses, helping to limit discounts in most instances to single digits. Some prices edged higher.
Coastal species prices firmed early although mild discounts were used to move quick shipping volumes. Buyers noted late in the week that some deals remained available if on the ground at mills. Traders frequently reported competing with lower priced Doug Fir entering the US from Canada.
Inland lumber producers reported a good resurgence of business in the latter part of the week, infusing the market with a level of activity it has not seen for several weeks. Although not all producers saw substantial price increases, some acted proactively and began to mend tattered prices.
Discounted studs remained in play early in the week throughout markets. Mills managed to clean up a lot of their surpluses and begin to raise prices from the lower levels as the week progressed.
Ponderosa Pine Mldg&Btr and Shop continued to reflect the reasonably comfortable balance between supply and demand that has existed for some time. Prices for both Mldg&Btr and Shop were again unchanged, although market demand for finished mouldings was good. Activity levels in Ponderosa Pine 4/4 boards showed a little slackening, based on renewed strength of dimension lumber.
Western Red Cedar producers reported sluggish sales activity. Shrinking order files prompted a few producers to announce they might be forced to reconsider their pricing. Hot weather received some of the blame for lackluster sales. Buyers stuck to their hand-to-mouth approach to purchasing.
A price index of lumber and panels used in actual construction for Aug. 17, 2018.
Western: regional species perimeter foundation
Southern: regional species slab construction
Click to enlarge
Panels: OSB markets picked up more momentum this week after pricing bounced back up last week. Buyers got off the fence across North America, although action was better in the West than in the East. Reluctance among buyers to come to the table faded.
Southern Pine plywood sales activity remained solid, leading to moderately higher rated sheathing prices and order files extending into September. Most mills reported lead times extending into the weeks of September 3 and 10, although some availability remained in August 27. Demand came from a broad swath of buyers.
Western Fir plywood producers continued to report good sales activity. Some producers reported being more focused on extending order files than elevating prices. Buyers seemed more confident with current price levels.
Canadian plywood markets were divided this week between East versus West, with the latter decidedly stronger. Factors at play included low inventories; a state of emergency in BC due to nearly 600 forest fires and associated logging issues.
Particleboard demand kept mill order files extended two to four weeks in most instances. Some producers continued to work at moving prices higher.
MDF sales, prices and order files remained strong on all markets. Order files out into mid- to the latter half of September were reported.
Lumber: Pricing in the SPF market began to firm early as producers sold surpluses and extended order files. A week of mostly up-limit moves in futures helped motivate buyers. Wednesday’s state of emergency announcement by British Columbia in response to numerous wildfires in the province drew a lot of attention.
Buyers entered the Southern Pine lumber market in higher numbers and purchased greater volumes. Mills cleaned up some of their largest excesses, helping to limit discounts in most instances to single digits. Some prices edged higher.
Coastal species prices firmed early although mild discounts were used to move quick shipping volumes. Buyers noted late in the week that some deals remained available if on the ground at mills. Traders frequently reported competing with lower priced Doug Fir entering the US from Canada.
Inland lumber producers reported a good resurgence of business in the latter part of the week, infusing the market with a level of activity it has not seen for several weeks. Although not all producers saw substantial price increases, some acted proactively and began to mend tattered prices.
Discounted studs remained in play early in the week throughout markets. Mills managed to clean up a lot of their surpluses and begin to raise prices from the lower levels as the week progressed.
Ponderosa Pine Mldg&Btr and Shop continued to reflect the reasonably comfortable balance between supply and demand that has existed for some time. Prices for both Mldg&Btr and Shop were again unchanged, although market demand for finished mouldings was good. Activity levels in Ponderosa Pine 4/4 boards showed a little slackening, based on renewed strength of dimension lumber.
Western Red Cedar producers reported sluggish sales activity. Shrinking order files prompted a few producers to announce they might be forced to reconsider their pricing. Hot weather received some of the blame for lackluster sales. Buyers stuck to their hand-to-mouth approach to purchasing.
A price index of lumber and panels used in actual construction for Aug. 17, 2018.
Western: regional species perimeter foundation
Southern: regional species slab construction
Click to enlargePanels: OSB markets picked up more momentum this week after pricing bounced back up last week. Buyers got off the fence across North America, although action was better in the West than in the East. Reluctance among buyers to come to the table faded.
Southern Pine plywood sales activity remained solid, leading to moderately higher rated sheathing prices and order files extending into September. Most mills reported lead times extending into the weeks of September 3 and 10, although some availability remained in August 27. Demand came from a broad swath of buyers.
Western Fir plywood producers continued to report good sales activity. Some producers reported being more focused on extending order files than elevating prices. Buyers seemed more confident with current price levels.
Canadian plywood markets were divided this week between East versus West, with the latter decidedly stronger. Factors at play included low inventories; a state of emergency in BC due to nearly 600 forest fires and associated logging issues.
Particleboard demand kept mill order files extended two to four weeks in most instances. Some producers continued to work at moving prices higher.
MDF sales, prices and order files remained strong on all markets. Order files out into mid- to the latter half of September were reported.