After a somewhat rush of demand in recent weeks, sales of most North America construction framing dimension softwood lumber items slowed slightly into mid-November.
Due to ongoing restricted supply, prices continued their upward trend of the past month or so.
Producers looked toward the usual seasonal Holiday downtime as they made their manufacturing plans to end the year having sold out of any remaining inventory; the usual practice for year-end.
For their part, customers continued to buy only the wood they needed for ongoing projects. All eyes were on January 2025, with a general consensus that business would continue to pick up. The strategy at sawmills was to manage order files toward
mid-December, in time for Holiday closures, while keeping prices generally moderated. Some specialty item production was starting to book for early next year.
In the week ending November 15, 2024, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$460 mfbm. This is up +$16, or +4%, from the previous week when it was $444, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. That week’s price is up +$57, or +14%, from one month ago when it was $403.
The frenzied tone of lumber sales attenuated in most product categories. Supply remained tight as a drum and prices were firm or up.
KEY TAKE-AWAYS:
- Producer order files were extended to early-December.
- Demand weakened slowly, but was still well-ahead of scanty supply.
- Sawmills felt no urge to be aggressive, and buyers were content to sit on the sidelines.
- Sales lead times were in the three- to five-week range.
- Positive moves in lumber futures underscored the buoyant tone in business.
- Southern Pine prices continued to correct after rising higher than the market could bear.
- SYP suppliers without on-ground inventory had to entertain significant counteroffers.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
