Year-End Arrived as North American Forest Industry Closed 2018 Smoothly

Year-End Arrived as North American Forest Industry Closed 2018 Smoothly

NORTH AMERICA LUMBER MARKET OVERVIEW: Dec 2018

This wacky year ended smoothly for North American forestry operators, as the usual seasonal curtailments, maintenance shutdowns, and inventory control took place at the end of December 2018. Prices on most construction framing softwood lumber commodities stayed flat from the previous week, or moderated downward slightly. Most players were prepared for the end of the year so desks and yards were well vacated even before the end of the final week.

As always, Madison’s would like to wish all of our readers and contacts a safe, happy holiday break and a wonderful New Year. We will be back in 2019 to continue delivering the latest data and trends in the lumber industry!

— Madison’s Lumber Reporter www.madisonsreport.com
SOURCE: Madison’s Lumber Reporter www.madisonsreport.com

Business conditions for lumber manufacturers in Canada and the US looked good for a quickly-looming 2019: several sawmill upgrades/expansions/building were announced in 3Q and 4Q 2018, US home sales were so brisk that prices rose and inventories dropped, new markets demonstrated ravenous demand for wood, and important approval was received for multi-story engineered wood building in the US.

Ongoing constraints are well know: specifically a messy tangle of trade disputes among key forestry buyers and sellers globally, severe-to-catastrophic timber loss/damage in important lumber producing regions of north-western US and Canada, and the seemingly inevitable inflationary pressures sure to hit USA next year.

Business was unsurprisingly slow as everybody wrapped up for the holidays

— Madison’s Lumber Reporter www.madisonsreport.com

That said, the North American forest industry is poised to start-up in 2019 with a bang, as it did this year and last.

The below table is a comparison of June 2018 and December 2018 prices for benchmark dimension softwood lumber 2×4 prices compared to historical highs of 2004/05:

SOURCE: Madison’s Lumber Reporter www.madisonsreport.com

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