In mid-September some big questions about what is happening with the lumber market and lumber prices were answered; when the benchmark lumber price reached the exact amount of the same week in 2023.
The sales price (FOB sawmill) of Western Spruce-Pine-Fir KD 2×4 #2&Btr was US$410 mfbm, just as it was in mid-September last year. Producers and customers alike have been asking since mortgage interest rates started rising in summer of 2022, “what will the new lumber market look like, at what price levels?”
Since the effects of the extreme volatility and stark changes during Covid and due to the destruction of transportation from the atmospheric river in British Columbia, now that these one-time circumstances are in the past, industry and watchers are
better able to understand the current situation. And from there, make some assessments of how the rest of this year will play out for lumber sales and prices.
In the week ending September 13, 2024, the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$410 mfbm, which is up +$4, or +1%, from the previous week when it was $406, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$28, or +7%, from one month ago when it was $382.
In a week of otherwise slow sales, another sawmill-closure announcement generated increased demand early on.
KEY TAKE-AWAYS:
- A major sawmill closure announcement pushed some buyers to find coverage amid limited supply.
- Sales remained at a slow-but-steady pace despite ongoing tight field inventories.
- Buyers continued to focus on immediate needs, filling inventory holes only.
- To keep feeding just-in-time material to end users, secondary suppliers replenished their own stocks from producers.
- Mill offer lists were often slim, forcing traders to shop around for the specific coverage they needed.
- Many large retail customers step in recently to buy up bigger volumes of discounted material.
- Buyers continued to rely on the distribution network to furnish their hand-to-mouth needs.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
