Lumber Prices Flat on Significant Production Curtailments
As October drew to a close, significant production curtailments at several large British Columbia lumber producers helped keep softwood lumber prices flat. Most of these operators cited high log costs vs lower lumber prices as the reason for taking this downtime. Meanwhile, it seemed that Weyerhaueser and the union came to an agreement, so the recent lack of Hemlock and Douglas fir lumber items is expected to be rectified over the coming month. These supply constraints, combined with quite low inventories in the field, provided lumber sellers with the ability to eschew counter-offers and stick with their prescribed price lists — for another week, at least.
Staying even from the previous week, in the week ending October 28, 2022, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was again US$480 mfbm, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. This is down by -$44, or -8%, from one month ago when it was $524.