As home building and construction activity across north america slows down
into winter, and demand for solid wood materials also slows, lumber prices
usually start to drop.
Sometimes, if there is a boost in building, there might be a late-season pop
in lumber prices. That happened this year at the end of October. This is
likely due more to end-users having kept their inventory levels very low for
most of the past year, than to any true increase in construction.
Those customers who are now finishing their projects but got caught short of
the wood they need to complete, had to go back to suppliers to make more
purchases. As such, sellers were able to increase prices slightly to account
for this rush of demand.
Prompt material was subject to modest discounts, while orders with delivery
a couple weeks out held firmer numbers.
In the week ending October 27, 2023, the price of Western Spruce-Pine-Fir
2×4 #2&Btr KD (RL) was US$380 mfbm, which is up by +$6, or +2%, from the
previous week when it was $374, said weekly forest products industry price
guide newsletter Madison’s Lumber Reporter.
That week’s price is down by -$33, or -8%, from one month ago when it was
$413.
Mixed signals permeated the Western S-P-F market according to suppliers in
the United States. The tone among customers was still resoundingly cautious,
but a decent number of car buyers came off the fence to cover burgeoning
demand from recently-active jobsites. Prices of studs took a tumble, with
most trims still in search of stable trading levels.
Meanwhile, buyers remained confused by a host of broader economic issues.
It was another uncertain week for Canadian Western S-P-F suppliers as prices
eroded further on standard- and high-grade dimension lumber. Caution
continued to rule the mindsets of buyers, who kept their forays mostly
confined to the distribution network.
Sawmills showed more and more availability on their lists as they
endeavoured to find effective trading levels amid subpar demand. Field
inventories remained extremely thin, and buyers felt zero pressure to shore
up their positions.
Demand for Southern Yellow Pine commodities was fickle to hear traders in
the Southern US tell it. Demand for most items was noticeably slower of
late, with 2×4 the latest dimension width to take a breather in sales. Six-
and eight-inch were extremely good-value items according to players, with
wides becoming more available in recent weeks.
Compared To The Same Week Last Year, When It Was Us$480 Mfbm, The Price Of
Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending October 27,
2023 Was Down By -$100, Or -21%. Compared To Two Years Ago When It Was $630,
That Week’S Price Is Down By -$250, Or -40%.
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