Actual Sales Of Construction Framing Dimension Softwood Lumber Did
Improve At The End Of February, Even As Prices Remained Flat.
Suppliers fielded good volumes of calls, many of which followed through to
actual sales. Customers dropped their recent habits of buying only the wood
absolutely needed for ongoing projects. As the first signs of spring have
not yet arrived, the momentum of North American lumber sales shifted from
just-in-time buying to beginning to stock up on inventory. Prices did remain
essentially flat however. Expectations are that rampant sawmill curtailment
will first cease, bringing manufacturing levels up closer to previous spring
volumes, before prices rise significantly.
There is a good volume of wood production available to come back online as
spring building season approaches.
In the week ending February 23, 2024, the price of benchmark softwood lumber
item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$442 mfbm. This is
flat compared to 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.
Commodity prices were flat or on either side of the previous week’s
levels as the standoff between supply and demand persisted. Players waited
with bated breath for the floodgates to open.
Western S-P-F purveyors in the United States noted an improving
sentiment among buyers and suppliers. Demand from end-users stubbornly
lacked momentum however. Discounted material was less prevalent at the
sawmill level, and availability continued to dwindle. Lean field inventories
were common as weak financial forecasts and waffling economic indices sapped
buyers’ optimism.
While the market appeared flat on the surface, players waited with bated
breath for the floodgates of sales to open. Secondary suppliers encouraged
their customers to cover 2×4 and 2×6 dimension as this remained the cheapest
plate stock in North America, aside from Southern Yellow Pine.
Suppliers of Western S-P-F lumber in Western Canada navigated an unclear
market. Buyer sentiment changed day-to-day, from confident to sour and back
again. The standoff between relatively balanced supply and demand persisted,
with both sides waiting for the next litmus test moment to show a clearer
direction. Sawmills maintained a cautiously optimistic tone amid firm prices
and order files in the range of two weeks.
One large producer in Western Canada was apparently off the market from
midweek-on. Mill curtailments and shutdowns continued to come down the pike,
but players said those developments hadn’t affected the supply-demand
equation much – yet.
Overall demand for Western S-P-F studs was low as buyers maintained a
cautious approach through this holiday-shortened week. Razor thin field
inventories were reported across the board, with customers preferring to let
the distribution network carry material rather than stocking up themselves.
Producers apparently fielded sneaky-strong takeaway; asking prices on nearly
every trim advanced between $10 and $24.
Eight-foot studs were the strongest seller while demand for nine-footers
took the backseat.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Compared To The Same Week Last Year, When It Was Us$417 Mfbm, The Price
Of Western Spruce-Pine-Fir 2×4 #2&Btr Kd (Rl) For The Week Ending February
23, 2024 Was Up By +$25, Or +6%. Compared To Two Years Ago When It Was
Us$1,330, That Week’S Price Is Down By -$888, Or -67%.
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