U.S. lumber and panel market reports-20120515

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U.S. lumber and panel market reports

May 15, 2012

U.S.: Lumber and panel market report ---- Week 19 2012

Framing lumber trading moderated following several weeks of hectic activity. Some traders termed it a digestion phase, as purchases made earlier worked through the system. Buyers also digested higher prices and extended order files, which left them more cautious about replenishment. Price gains moderated as well, but nonetheless pushed the Random Lengths Framing Lumber Composite Price to $337. This ensured that Canadian mills will see taxes on shipments to the U.S. reduced during June (see Through a Knothole).

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Week
May 11

Week
May 4

Year Ago
2011

Random Lengths Framing Lumber Composite Price*
$337
$329
$259

KD Western S-P-F #2&Btr 2x4 R/L Mill Price
304

301
228

KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes
400

393
325

Green Douglas Fir Std&Btr 2x4 R/L (Portland)
250

247
248

Southern Pine (Westside) #2 2x4 R/L
353

343
269

KD Coast Hem-Fir Std&Btr 2x4 R/L
325

320

265

Ponderosa Pine (Inland) #2&Btr 1x12 R/L
605

615

645

* Weighted average of 15 key items

Structural panel sales lost momentum. It was a digestion week for the OSB market, and prices reflected mostly modest moves in either direction. Buyers purchased only what they had to have. Southern Pine plywood sales were lackluster. Buyers were wary of booking June shipments, in part due to the three-day weekend at the end of the month. Meanwhile, most producers held to their recent quotes. Western Fir plywood producers leaned on sales to Canada and industrial segments to partially fill their schedules for the weeks of May 28 and June 4.

(f.o.b. mill prices)	Week May 11	Week May 4	Year Ago 2011
Random Lengths Structural Panel Composite Price*	$354	$352	$280
Southern (west-east) 15/32-inch 3-ply exterior sheathing plywood	385-405	385-405	290-307
Southern (west-east) 15/32-inch 4-ply exterior sheathing plywood	387-415	387-417	295-315
Western 1/2-inch 4-ply exterior sheathing plywood	376	375	305
North Central 7/16-inch Oriented Strand Board	230	227	167
*Weighted average of 11 key items

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(Source: Used with permission granted by Random Lenghts Publications, Inc.)