Soft Demand Brings Lower Lumber Prices
Lumber prices dropped yet again at the end of March, as demand remained soft and customers skeptical. While sawmills were able to book order files out two weeks or longer, most buying remained just-in-time. Almost no one was stocking inventory, which is a bit odd given the time of year. Usually by the end of March the weather is quite improved and all eyes look toward the oncoming spring building season. This year, the seemingly relentless rounds of storms and snow across the continent has delayed that burst of spring lumber buying. Add to that a sense of economic uncertainty, specifically in regard to home building and housing construction, and the result is low volumes of lumber sales. The looming Easter long weekend will reveal much …. particularly regarding where lumber prices will be as construction finally ramps up this year.
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In the week ending March 31, 2023, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$356 mfbm, which is down by -$24 or -6%, from the previous week when it was US$380 mfbm, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. This is down by -$17, or -5%, from one month ago when it was $373.
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