The destruction far inland from Hurricane Helene in locations not typically experiencing this kind of severe weather was nowhere near being fixed more than a week later.
There was still significant areas without power, and work crews had not yet begun to rebuild the large amount of road damage. Lumber customers and resellers alike, who had long gotten into the habit of not stocking inventory, all needed to call sawmills for whatever wood they needed for ongoing projects.
This caused an immediate surge in Southern Yellow Pine prices, as availability was non-existent as producers still struggled to get back to basic functioning.
There was quite an increase in demand noted by suppliers of Eastern Spruce-Pine-Fir, however those prices did remain flat. At least for now.
In the week ending October 11, 2024, the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$388 mfbm, which is flat from the previous week, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. That week’s price is down -$16, or -4%, from one month ago when it was $404.
Demand was sideways-to-solid depending on the product category, species, and region. Sales of Southern Yellow Pine continued to strengthen in the wake of production and logistical disruptions caused by Hurricane Helene.
KEY TAKE-AWAYS:
- Western Spruce-Pine-Fir producers in the US held dimension asking prices at or around the previous week’s levels.
- Western Canadian and US sawmill order files were around two- to three-weeks.
- Ongoing tight supply created the impression that increased buying would quickly clean up available material.
- Eastern Spruce-Pine-Fir prices climbed amid limited supply.
- Disruptions to sourcing Southern Yellow Pine timber and shipping lumber were significant as several facilities still didn’t have power.
- Scarce Southern Pine supply flowed demand to Eastern SPF, thus suppliers there turned down counteroffers and leaned on firm pricing.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
