Winter Weather Keeps Lumber Sales Low
AS BUSINESS IN JANUARY 2024 GOT GOING AFTER THE ANNUAL HOLIDAY BREAK, THE PRICE TRENDLINE FOR BENCHMARK CONSTRUCTION FRAMING DIMENSION LUMBER COMMODITY ITEM WESTERN SPRUCE-PINE-FIR KD 2×4 #2BTR CONTINUED NICELY FROM WHERE IT ENDED LAST YEAR.
A quick look at the graph above to compare the yellow line of 2023 to the blue line of this year, shows there is a return to stability and the more regular price changes that were normal until the disruptions of the Covid era. Given that the great volatility of that time is behind us, expectations are that — going forward — both the wood products manufacturing and the home building industries will be once again able to plan ahead for their future business dealings.
In the week ending January 19, 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, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
That week’s price is up by +$31, or +8%, from one month ago when it was $411.
Western S-P-F purveyors in the United States were under a blanket of snow, blunting the overall pace of business noticeably. Still, there were those traders who were pleasantly surprised with inquiry levels considering the time of year. Western mills maintained their numbers for the most part , loathe to go any lower as they were barely in the black as it was.
Suppliers advised their charges to buy through Valentine’s Day and then reevaluate the market. They hoped that by that time there will be a clearer picture as to the direction of multi-family construction in 2024. In the meantime, trucking lanes and rail lines in most regions ground to a halt as the mercury dropped.
Western Canadian suppliers of Western S-P-F lumber navigated a muted market muffled by winter weather. Sawmills held most of their asking prices flat while a narrow trading range was reported at the secondary supplier level.
A small contingent of active buyers shopped their needs aggressively on specific tallies, finding limited availability among wholesalers and distributers.
Producers maintained order files in the three week range, while minimal takeaway caused their offer lists to grow marginally. Delivery times increased as rough road conditions caused headaches in the trucking sector.
