After a very slow first half of this year for lumber sales, at the beginning of August demand picked up enough to turn around the most recent price drops.
There was enough sales volumes for suppliers to be able to firm up prices, potentially providing understanding of the new bottom. A few more curtailment announcements as well as the annual seasonal holiday break in Quebec helped correct the supply-demand balance. As they had been warned by sellers since spring, customers found themselves sorely without inventory.
Those needing specific tallies had a hard time locating precisely the mix of commodities for their ongoing projects. One thing is for sure: all sawmills across North America are well stocked up with logs.
So should this latest boost of demand continue, producers will have no trouble increasing manufacturing volumes to meet.
In the week ending August 2 2024, the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$354 mfbm, which is up +$6, or +2%, from the previous week when it was $348, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up +$15, or +4%, from one month ago when it was $339.
Amid sustained demand and takeaway, most lumber and stud commodity prices stayed firm or appreciated. Plywood and OSB continued to struggle by comparison, the latter being particularly frustrating for players.
KEY TAKE-AWAYS:
- Buyers struggled to keep their inventories from utter depletion.
- Sawmills experienced firm to slightly-up price levels and order files into mid-August.
- Buyers worked to cover needs that built up when the market was slower and supply more abundant.
- Prompt availability was lower than players have seen in many weeks.
- Buyers needing quick coverage scrambled, looking to the distribution network.
- Shipments from many producers were into mid-August or further, with higher price levels to boot.
- Some thought commodity prices were approaching a soft top after several weeks of advancing.
- Sellers reported high truck volume sales.
- Buyers found spotty availability when looking for specific tallies.
Madison’s Benchmark Top-Six Softwood Lumber and Panel Prices: Monthly Averages
