For this book-end holiday week in Canada and the US, it is a time of year when players can usually get a gauge of how the construction framing dimension softwood lumber market is going to look as the real home building season comes on.
From the way lumber sales are going, things are definitely flat. As is clear by the graphs shown here, this year for 2024 most lumber prices have been quite stable. As demand seems to be levelling off, so are price levels.
This does indeed provide the indication that many players have been seeking; it looks like there is good stability in the marketplace albeit at a lower price point than most sawmills would prefer.
In the week ending May 24, 2024, the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$384 mfbm, which is up +$1, or +0%, from the previous week when it was $383, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is down by -$46, or -11%, from one month ago when it was $430.
The double holiday period apparently downplayed demand levels, but players were adamant that firm prices and balanced supply indicated a simmering market ready to advance.
KEY TAKE-AWAYS:
- Buyers tried to balk at firm asking prices then capitulated, to cover their needs in the four- to six-week range.
- A good balance between supply and demand.
- Amenable sawmill shipment timelines; price levels in a healthy range.
- Coastal product prices established a foothold to stabilize.
- Field inventories were scant; the market felt underbought according to suppliers
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
