Ongoing Soft Demand Keeps Lumber Prices Stable
MAY DAWNED TO WITNESS NO PARTICULAR INCREASE IN LUMBER DEMAND. SUPPLY REMAINED GOOD AS SAWMILLS HAD PLENTY OF INVENTORY ON HAND. CUSTOMER INQUIRIES DID IMPROVE, AS IS NORMAL FOR THE TIME OF YEAR, BUT WAS STILL ALONG THE LEVELS OF THE PAST WINTER.
The overall pace of business remained lacklustre considering the time of year, yet traders remained optimistic about more sales to come.
Sellers of green Douglas-fir lumber and studs in the United States reported another grind of a week. Inquiry was out there, but securing actual orders was a challenge according to suppliers. Wholesalers and distributors were busier than sawmills as buyers continued to favour highly-specified mixes and LTL orders that could be shipped in 10 days or less.
Meanwhile, producers worked to build up their meagre log decks as soggy forestland dried out, anticipating improved demand in the back half of May. Sawmill order files were largely into the second or third week of May.
COMPARED TO THE SAME WEEK LAST YEAR, WHEN IT WAS US$1,060 MFBM, THE PRICE OF WESTERN SPRUCE-PINE-FIR 2×4 #2&BTR KD (RL) FOR THE WEEK ENDING MAY 05, 2023 WAS DOWN BY -$700, OR -66%. COMPARED TO TWO YEARS AGO WHEN IT WAS $1,210, THAT WEEK’S PRICE IS DOWN BY -$850, OR -70%.
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