Market Recap: RISI Crow's Construction Materials Cost Index for March 16, 2018

A price index of lumber and panels used in actual construction for March 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 buyers limited purchases to must-needs. Subsequent erosion of mill order files in eastern Canada prompted those producers to lower prices. In the West, where railcar availability remained tight and shipments a month behind, some mills held prices while others lowered them.

• Price gains ebbed and more discounts appeared in key Southern Pine dimension items. Mills reported production outpacing sales, and buyers saw more quick shipping volumes available. Price declines and gains were most often by single digits. Dealers often turned to distribution yards to remain nimble with regard to inventories, perceiving greater downside risk.


• Coastal species producers approached the market more aggressively, and price cuts often depended on a producer’s urgency to sell. However, volumes sold at any price level were light as buyers held off purchasing, seeing strong potential for more downside risk.


• The pace in the Inland lumber market remained modest. Price declines continued to tatter mill lists, as most buyers held off order placement. Field inventories were described as being slim.


• Stud prices weakened considerably. The level of price declines varied widely, depending on the urgency to sell. Limited railcar availability tended to buoy western SPF prices while quick shipping volumes of Doug Fir placed significant downward pressure on those items.


• Some sales of Radiata Pine were discounted, according to reports, confirming that slightly more stock is available than the market is absorbing.


• Ponderosa Pine industrials remained firmly priced in Shop items, but Mldg&Btr showed a slight slippage. Ponderosa Pine boards were still tight enough to keep traders looking hard for any volume of supply. Prices of Selects were unchanged. Regarding Commons, most #2 and #3 Commons were $5 above last week’s listed numbers.


• Western Red Cedar producers remained busy filling orders for second quarter shipments. While some looked more earnestly at beginning to fill second quarter order files, others reported already taking orders out into May and even June.

Panels

Price cracks started to form in topped-out OSB markets. Eastern producers continued to ship into the West, where transportation issues have shipments snared. Two-tiered activity continued this week, especially in the East.

• Southern Pine plywood producers sold at a moderate pace, allowing more mills to move order files into the first week of April. While some availability remained for late March, sales of some items out into the week of April 9 were also reported. Little urgency to sell at lower prices was evident.


• Sales activity for Western Fir plywood mills continued at a pedestrian pace, with sporadic energy surrounded by days of limited interest from buyers. Prices were largely flat. Mills gave up a few dollars on occasion, described by one buyer as a “friendly five.” Others held firm to prices, carrying order files into the first weeks of April.


• Canadian plywood activity was slow at the mill level, though some in distribution reported strong activity among end users. Pricing was sideways.


• Particleboard and MDF producers reported moderate increases in sales activity, which many expect heading toward the month of April as seasonal demand improves. There was plenty of particleboard for buyers to choose from.

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