OSB activity picked up a bit this week in the U.S.
The pace of sales settled down for SPF mills, leading to flatter pricing.
After a busier week prior to the long Labor Day weekend, SPF sales activity carried on at a healthy pace.
Negative global economic news and the reaction to it by stock markets sent some SPF lumber buyers into hiding early in the week.
Abundant availability in the Southern Pine market was at the top of the list of concerns among traders.
The sales pace in the SPF market was pedestrian.
A sense in the SPF market that buyers were ready to cover some needs began on Tuesday.
Two factors weighed heavily on buyers’ decisions as to whether they should participate.
SPF sales were often described as dull, but mills, especially in western Canada, had little reason to lower prices.
Western SPF mills tended to hold quotes for #2&Btr at the prior week’s levels, still reporting order files extended out into the end of the month.
Prices of #2&Btr in the SPF market were firm, with any adjustments generally ticking moderately higher.
Secondaries and SPF producers noted that sales activity was somewhat slower than in prior weeks, but a “good” pace maintained firm to higher pricing.
Strong order files at SPF mills limited availability for buyers needing coverage, effectively pressing prices higher.
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Canadian mills continued to sell good volumes of SPF, helping maintain strong lead times and pushing prices higher.
Momentum generated the prior week carried over after the long holiday weekend, pushing SPF mill order files out and prices higher.
The SPF market gathered more momentum after a pickup in sales activity the week prior, leading to higher prices in both the West and East.
Sales activity improved in the SPF market, generating firmer pricing in both the West and East.
Traders exhibited considerable confusion with regard to the amount of weakness in the SPF market.
SPF lumber sold at a decent pace, allowing mills in the West to maintain most price levels.
Trading in the SPF market improved over the previous week but not enough to mend the price situation significantly.
Some SPF producers reported improved activity over last week and sales keeping up with the week’s production, but it did not stop prices from falling significantly.
SPF mills with thin order files tried to sell what was needed without lowering prices too dramatically.
Traders questioned the strength behind the rally last week and, as it turns out, were correct in their perception that the SPF market did not gather much momentum.
Trading in the SPF market was more active. The increase in demand enabled mills to get rid of floor stocks and firm quotes or establish an order file and bump prices moderately higher.