The post-dual national holidays in Canada and the US did nothing to jolt an increase in lumber sales. As true summer weather is upon North America any hopes of a seasonal jump in demand for lumber did not materialize.
Sawmills and wholesalers alike prepared to hang “Gone Fishing” signs at their desks, so little inquiry did they entertain in mid-July. The rotating production curtailments and downtime did at least prevent lumber prices from falling too much below cost-of-production, but low sales volumes did not provide encouragement for any immediate improvement.
While no one is stocking inventory, and supply is quite tight, demand is soft enough to not cause concern among customers. So far this season the builders and contractors have been able to get the wood they needed for ongoing
construction jobs from sawmills and wholesalers easily enough, so feel no urgency to hold inventory.
In the week ending July 12, 2024, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$332 mfbm.
This is down -$10, or -3%, from the previous week when it was $356, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down -$14, or -4%, from one month ago when it was $346.
The post-holiday litmus test of improving demand was a resounding dud. Prices of dimension and studs continued to sputter while that of panels showed further weakness.
KEY TAKE-AWAYS:
- Commodity prices remained conspicuously cheap across all products.
- Wide dimension was the only remotely profitable group.
- Buyers had a prevailing and reinforced expectation of quick truck shipments at a discount.
- Sawmill asking prices a mixed bag.
- Downside momentum abating due to persistently low numbers, general fatigue, and less Euro wood coming into Eastern ports.
- Too many suppliers competing for limited business.
- Discounted plywood and OSB material flowed into US markets.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
