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: Buying remained subdued in the SPF lumber market. As mill order files eroded, mills in the East discounted. Western producers, several with order files extended to the middle of September, often chose to hold prices. The extended weekend for Labor Day holidays in both the US and Canada generated some apathy among buyers, particularly late in the week.
Southern Pine traders expressed certainty in the upward momentum 2x4 prices continued to possess. Their conviction with regard to wider widths was not as resolute and mixed. Cooler weather improved job site activity. Covering multifamily jobs remained a considerable portion of overall demand. Sales activity in the Coastal species market was subdued, leading to a minimal number of price adjustments. Producers often reported flat pricing and sales activity that grew slower as the long holiday weekend neared.
Inland lumber producers reported a modest pace to the market but one that possessed liquidity and an opportunity to promote a couple of prices slightly. At the end of the week, most prices were perking at about the same levels as the prior week. Sluggish stud sales eroded mill order files and forced some cracks into the market. Wholesalers still trying to clean up their positions at levels below replacement costs made it more difficult for mills to sell.
Ponderosa Pine and imported industrial lumber is less available than most buyers would like. Industrial lumber, like Commons, is actively feeding a moulding and millwork industry that shows good energy. Ponderosa Pine Selects traded quietly but steadily at levels consistent with recent numbers and a balanced market. No notable changes occurred. Ponderosa 4/4 Commons found good activity in #2 Common, with 1x6 still avidly sought by buyers.
While the end of August remained dull with regard to Western Red Cedar sales activity, a few producers noted an uptick in demand. Inventory replacement remained highly specified, with truckload volumes consisting of multiple items and lengths.
A price index of lumber and panels used in actual construction for Aug. 24, 2018.
Western: regional species perimeter foundation
Southern: regional species slab construction
Panels: Markets for OSB were quiet. Mill-level sales were lethargic, and retailers chased orders while still cautiously buying hand-to-mouth. Order files ranged from the week of September 3 out to Oct. 1.
Southern Pine plywood producers were generally satisfied with the volumes sold during the week, particularly prior to a long holiday weekend. A slower pace was noted toward the end of the week, although some buyers tied up loose ends as late as Friday morning. Producers focused on trying to keep order files out in front of them. Western Fir plywood sales were lackluster and sporadic. Mills maintaining CDX price levels reported difficulty selling the week’s production. Buyers in the West continued to purchase truckload volumes at a fairly steady rate.
In general, Canadian plywood markets were quiet, although two producers reported brisk business. Again, the West was stronger than the East, with Vancouver showing good interest. With tariffs and a lopsided exchange rate, US wood did not move to Canada.
Particleboard and MDF market players returning from the IWF show in Atlanta reported a market more back to normal. Overall sales activity continued at a good pace. A few producers continued to roll out price increases, with little resistance from customers.
Lumber: Buying remained subdued in the SPF lumber market. As mill order files eroded, mills in the East discounted. Western producers, several with order files extended to the middle of September, often chose to hold prices. The extended weekend for Labor Day holidays in both the US and Canada generated some apathy among buyers, particularly late in the week.
Southern Pine traders expressed certainty in the upward momentum 2x4 prices continued to possess. Their conviction with regard to wider widths was not as resolute and mixed. Cooler weather improved job site activity. Covering multifamily jobs remained a considerable portion of overall demand. Sales activity in the Coastal species market was subdued, leading to a minimal number of price adjustments. Producers often reported flat pricing and sales activity that grew slower as the long holiday weekend neared.
Inland lumber producers reported a modest pace to the market but one that possessed liquidity and an opportunity to promote a couple of prices slightly. At the end of the week, most prices were perking at about the same levels as the prior week. Sluggish stud sales eroded mill order files and forced some cracks into the market. Wholesalers still trying to clean up their positions at levels below replacement costs made it more difficult for mills to sell.
Ponderosa Pine and imported industrial lumber is less available than most buyers would like. Industrial lumber, like Commons, is actively feeding a moulding and millwork industry that shows good energy. Ponderosa Pine Selects traded quietly but steadily at levels consistent with recent numbers and a balanced market. No notable changes occurred. Ponderosa 4/4 Commons found good activity in #2 Common, with 1x6 still avidly sought by buyers.
While the end of August remained dull with regard to Western Red Cedar sales activity, a few producers noted an uptick in demand. Inventory replacement remained highly specified, with truckload volumes consisting of multiple items and lengths.
A price index of lumber and panels used in actual construction for Aug. 24, 2018.
Western: regional species perimeter foundation
Southern: regional species slab construction
Panels: Markets for OSB were quiet. Mill-level sales were lethargic, and retailers chased orders while still cautiously buying hand-to-mouth. Order files ranged from the week of September 3 out to Oct. 1.
Southern Pine plywood producers were generally satisfied with the volumes sold during the week, particularly prior to a long holiday weekend. A slower pace was noted toward the end of the week, although some buyers tied up loose ends as late as Friday morning. Producers focused on trying to keep order files out in front of them. Western Fir plywood sales were lackluster and sporadic. Mills maintaining CDX price levels reported difficulty selling the week’s production. Buyers in the West continued to purchase truckload volumes at a fairly steady rate.
In general, Canadian plywood markets were quiet, although two producers reported brisk business. Again, the West was stronger than the East, with Vancouver showing good interest. With tariffs and a lopsided exchange rate, US wood did not move to Canada.
Particleboard and MDF market players returning from the IWF show in Atlanta reported a market more back to normal. Overall sales activity continued at a good pace. A few producers continued to roll out price increases, with little resistance from customers.