RISI Crow’s Market Recap for Aug. 10

A price index of lumber and panels used in actual construction for Aug. 10, 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 traders reported improved sales activity. Increased overseas export and big block orders of 2x6 taken by a couple of producers fanned the embers, prompting buyers to increase their purchases of that dimension. Nevertheless, prices continued to decline across most dimensions and grades.

• Southern Pine prices continued to decline, dropping for the ninth or tenth consecutive week, depending on the item. Producers often reported good liquidity at discounted levels. Traders looked for signs that a price bottom was near.


• Coastal species producers experienced a mild increase in sales activity, enough that some producers declared price bottoms in a few items were found. To get to those levels, discounts were deep. One item managing to find a floor was green Doug Fir 2x4 Std&Btr.


• Inland lumber producers continued to await a clear sign that the market was finding a bottom. As of late in the week, no real stability had been established. Mill files were reported to be modest, but some producers sold heavily discounted lumber to keep stock moving.


• Stud producers experienced various degrees of increased demand, but prices continued to decline. Buyers perceived a price bottom for a few items, although they were not sure how long those floors would last. Across most items, producers remained flexible with prices, often depending on whether they had quick railcars to load.


• Ponderosa Pine Mldg&Btr and Shop showed no price changes, although overall activity levels were decent. Neither Ponderosa Pine nor Radiata Pine reflected changes in either 5/4 or 6/4 Mldg&Btr, and any changes in Shop were modest. Radiata Pine blanks adjusted down. Greatest interest in Ponderosa Pine boards came in most #2 Commons, feeding the DIY demand. Price changes were rare, but the pace improved. Mill files have not been robust, and user inventories showed some leanness.


• Hot weather was used by Western Red Cedar producers to excuse the lack of sales activity. Buyers needing to fill in inventories looked to secure prime lengths from mills.

Panels: This week OSB markets stabilized as the pricing free-fall slowed and buyers picked up confidence and came to the table. By Friday, some regions even gained ground on pricing. Still, no one is taking a big position.

• Following a modest increase in sales activity the week prior, Southern Pine plywood demand picked up markedly beginning late Tuesday. Strong buying Wednesday prompted mills to firm prices after lowering quotes from the prior week early.


• Perceptions the prior week that the Western Fir plywood market was getting ready to turn the corner was realized this week. Buyers entered the market in greater numbers to replenish inventories after several weeks of working them lower or merely filling holes.


• After Canadian plywood prices stopped plummeting, stability returned to the market this week. While there was no rush for volume, buyers started coming back. Activity was spotty, with some calling it slow and others reporting brisk business.


• Particleboard pricing and market activity were steady. Supplies of MDF were tight across all regions. Several producers reported MDF order files extended from mid- to late September.