The annual seasonal Holiday break loomed large in mid-December, bringing with it the usual slow-down in lumber sales. Prices dropped slightly to reflect weak demand.
Most customers had already ordered, before US Thanksgiving, whatever wood they needed to end this year. These latest softening prices did attract some increased interest, however buyers generally chose to stay on the sidelines in hopes that prices might drop further.
Sawmills were booked for production right up to the 2-week holiday closures so were not much motivated to complete more orders at lower prices. The strategy for players now is to end the year with no inventory
on-hand, so the focus was on selling out any remaining wood at lumber yards.
In the week ending December 13, 2024, the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$465 mfbm, which is down -$10, or -2%, from the previous week when it was $475, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$4, or +1%, from one month ago when it was $461.
The seasonal wind-down proceeded apace this week, with players increasingly distracted by the prospect of relaxing with family and friends over the Holiday break. Commodity prices were largely flat or close to the previous week’s levels.
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KEY TAKE-AWAYS:
- Buyers sought coverage of any holes in their inventories they felt they needed to fill before the Holidays.
- Sawmills were winding down production schedules.
- Commodity prices were flat or slightly down from the previous week.
- Sellers didn’t have a ton on their offer lists, but availability did grow slowly on dropping demand.
- Producers were increasingly open to counteroffers as they cleaned up their year-end inventories.
- Buyers aggressively pursued their wants and needs among both primary and secondary suppliers.
- Ample prompt availability of 2×4 dimension remained.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
