Customers Remained Cautious As The Effects Of Ongoing Winter Weather Kept
Construction Activity Low.
Sellers warned of looming supply shortages in the future if everyone held
off buying until they absolutely needed the wood. Sawmills and wholesalers
alike were generally fielding orders highly-specified mixed loads. The
large-volume, bulk purchases which usually signal the spring building season
has arrived had not yet materials. Prices remained firm as suppliers held
their ground, knowing that the flow of orders will start coming in sooner or
later.
In the week ending February 16, 2024, the price of Western Spruce-Pine-Fir
2×4 #2&Btr KD (RL) was US$442 mfbm, which is flat from the previous week
when it was $442. That week’s price is down by -$3, or -1%, from one month
ago when it was $445.
Uncertainty prevailed in much of the North American lumber market; field
inventories were lean in every lumber product category.
Western S-P-F suppliers in the United States faced ongoing challenges in
matching sputtering demand this. Buyers were indecisive, often switching
between multiple suppliers before making small purchases or leaving the
market altogether. Distributors and wholesalers managed to maintain decent
business levels however, albeit at a slower pace typical for this time of
year.
Pockets of winter weather created disruptions in consumption and
transportation, often in the same region. Purchasers continued to carry
light field inventories as they strongly relied on the distribution network
to have material ready to ship when they needed it.
Uncertainty prevailed in the Canadian Western S-P-F market as buyers largely
remained on the sidelines, effecting subpar demand. While secondary
suppliers reported a steady stream of purchases, actual sales volumes were
low as customers focused on mixed loads and LTL orders. Buyers remained
cautious, opting to hold off despite the widely acknowledged lack of
potential for lower prices.
Larger sawmills held firm on prices, while smaller regional producers in
Western Canada offered discounts on certain items to move accumulated stock.
This discrepancy added to the confusion in spruce and the broader market.
Green Douglas-fir trading mirrored the previous week. Hemlock/fir commodity
prices in general hovered close to the previous week’s levels as supply and
demand remained in a loosely balanced state. With construction activity
uninspiring even in the warmer California markets, trading was slow and
consumption was slower. Buyers continued to purchase conservatively, keeping
inventories low. This raised questions about supply levels once spring
building starts.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$470 Mfbm, The Price
Of Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending February
16, 2024 Was Down By -$28, Or -6%.
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