RISI Crow Market Recap — June 8, 2018
LUMBERYARDS

RISI Crow’s Market Recap for June 8

Participation among SPF buyers subsided further; meanwhile, OSB markets were selective and quiet.

BY HBSDealer Staff

A price index of lumber and panels used in actual construction for June 8, 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

Participation among buyers in the SPF market subsided further. Wholesalers trying to liquidate their positions at lower prices experienced limited sales. Meanwhile, producers tried to maintain price levels by leaning on order files.

  • The pace of trading in Southern Pine eased. Buyers purchased small volumes when the need arose and digested purchases made in April and May. Light volumes of narrow widths sold at or near the prior week’s levels, with 2×4 most susceptible to discounts.
  • Less trading over the past couple of weeks caught up with a few Coastal species lumber mills, forcing some discounts. Overall, pricing was flat with cracks developing, as was the case in other markets. Meanwhile, 2×12 remained soft, with lower prices showing up at some mills.
  • Inland lumber species remain strong, despite a definite slowdown in overall mill sales. This action was expected by both producers and their customers, but the slower pace of the market seems to have affected prices only slightly so far.
  • Stud mills opened up to counters more readily in the latter half of the week after order files eroded. Mills with longer order files did little in the way of discounting. Producers were most aggressive with 9’ stud prices, sometimes lowering quotes significantly to sell quick shipping volumes.
  • Ponderosa Pine Mldg&Btr and Shop showed only a few cosmetic changes in price, with 5/4 #3 Shop remaining the most constant market maker. Ponderosa Pine Selects and Commons showed no real change in market pace. Selects remained stable in price, without comment from either buyers or sellers. Commons showed very few changes, and those that did appear were likely the result of attempts to liquidate accumulating stock.
  • Market changes were minimal in Western Red Cedar, and prices continued to maintain levels. Steady purchasing continued to absorb most of the production, although some excesses remained in play, mostly in tight knot sidings and decking.


Panels

OSB markets were selective and quiet. Mill order files ranged from the week of June 18 to 25. The elevated prices of OSB have imposed purchasing limits on buyers, who battled cash outlays and credit limits.

  • The Southern Pine plywood market experienced its slowest week in the past several. Producers sold decent volumes but buyers backed away in greater numbers, some preferring to see the market’s next move before buying more.
  • There was enough momentum in the Western Fir plywood market for mills to raise quotes modestly and receive orders for truckload volumes at those levels. Sales were moderate, which helped push mill order files out more solidly into the week of June 25.
  • Canadian plywood exploded the week prior, leaving the market stronger but insecure and buyers much more cautious this week. Mill order files range from July 2 to July 16, and mill add-ons highly flexible, up to +6 from some producers with the most solid files. But there is a general consensus in the industry that prices are flat.
  • Particleboard sales were lackluster overall, with a few producers reporting a downturn in purchasing.
  • MDF remained a notch stronger than particleboard overall, even described as “robust.” Moulding manufacturers remained busy and purchased accordingly.

For more on RISI, click here.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How would you describe your customers’ price-sensitivity in today’s market?
RISI Crow Market Recap — June 1, 2018
LUMBERYARDS

RISI Crow’s Market Recap for June 1

SPF price adjustments were minimal; meanwhile, OSB activity was serene but markets were firm.

BY HBSDealer Staff

A price index of lumber and panels used in actual construction for June 1, 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 price adjustments for most key items were minimal as buyers continued to take a breather. News of the CP rail strike prompted some producers to go off the market until an agreement between the two sides was announced several hours later. A July futures contract discounted significantly to cash prompted buyers to purchase late summer needs from the board.

  • Trading in Southern Pine remained active, although the pace eased. Price increases reflected a calmer market and order files in many instances extending into the latter half of June. Digestion, vacations taken after the long holiday weekend and rains from Subtropical Storm Alberto were reasons given for the more pedestrian pace.
  • A moderate pace, described by one producer as “more of a grind,” took the wind out of Coastal species price momentum. Despite mills producing more dry Doug Fir when possible, green prices flattened. Yards once dependent on SPF continued to substitute Doug Fir.
  • Despite slower calling rates, Inland lumber producers reported that they were “selling good volumes.” Only 2×12 #2 showed weakness, as it has over the last several weeks. Prices were otherwise flat or slightly improved in both Fir-Larch and Hem-Fir.
  • Limited volumes of studs available in markets kept moderate upward pressure on many prices. “They’re tight,” noted a trader. Mill order files extended into the latter half of June and, for some items, as far out as early July.
  • Ponderosa Pine Commons continued to show lethargy in #2. The #3 and #4 Common were moving reasonably well at unchanged prices. Industrial prices were unchanged in a modest-paced week.
  • Western Red Cedar producers often reported steady sales activity. Dry weather in the West kept volumes flowing out of yards in that region. Traders cited high costs of framing lumber for buyers’ hesitancy to speculate on cedar volumes.


Panels

In most regions, OSB activity was serene but markets were firm. The U.S. South slowed with heavy rain. Eastern Canada was the exception, with producers OTM, files into July, and an underbought market panicking.

  • Southern Pine plywood producers reported a moderately slower pace, but pricing remained solid to higher. Coming off a holiday and rains in the Southeast were cited as reasons for the drop-off in activity. Strong order files extending as far out as the first week in July contributed to higher rated sheathing quotes.
  • After a slow start following the long holiday weekend, Western Fir plywood producers experienced an increase in activity by the middle of the week. Mill order files often moved into the week of June 25, with more minor volumes available the week prior.
  • The Canadian government announced a retaliatory 10% tariff on US plywood late in the week, sending Canadian plywood into a frenzy. Pricing rose eight points from last week. Producers and distributors went OTM as prices skyrocketed.
  • Both particleboard and MDF producers reported few changes in overall steady market activity. Prices held up, although discounted particleboard in the East was apparent. Meanwhile, attempts to raise both particleboard and MDF prices in reaction to higher resin costs and escalating freight rates were also evident.

For more on RISI, click here.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How would you describe your customers’ price-sensitivity in today’s market?
LUMBERYARDS

U.S. LBM expands its holdings

The acquisition-oriented dealer adds Arizona’s R&K Building Supplies.

BY HBSDealer Staff

U.S. LBM Holdings, the pro dealer and distributor of specialty building materials, has acquired Arizona’s R&K Building Supplies.

Founded in 1974, R&K Building Supplies distributes lumber and a broad line of specialty products, such as windows, doors, millwork, insulation, trusses, lumber and other materials, to contractors and homeowners from its 20-acre location outside of Phoenix. R&K’s facilities include sales offices, showrooms, a lumberyard, truss plant and multiple warehouses.

R&K President Chad Coons will be retiring from the company in the coming months and his son Chip Coons, currently vice president of R&K, will continue as president.

“We congratulate Chad for his many successful years leading R&K and are excited to welcome Chip and the R&K team to U.S. LBM,” said U.S. LBM President and CEO L.T. Gibson. “R&K shares our values of operational excellence and continuous improvement, and this new partnership brings another market leader into the U.S. LBM fold, complements our recently-opened Rosen Materials location in Phoenix and expands our presence in a growing construction market in the Southwest.”

U.S. LBM was advised by Honigman Miller Schwartz and Cohn LLP.

Not counting R&K, US LBM operates 31 divisions. The company was formed in 2009 as a collection of largely autonomous lumberyards. In July of 2015, private equity firm Kelso & Company entered an agreement to purchase a majority of the equity interests in the company.

Other recent acquisitions include those of Ridout Lumber of Searcy, Ark.; and Keene Lumber of Muskegon, Mich.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

POLLS

How would you describe your customers’ price-sensitivity in today’s market?