Random Lengths structural panel composite drops US$2 to US$287/msf, averages US$297/msf in October

LOS ANGELES , November 6, 2011 () – The Random Lengths structural panel composite has dropped US$2 (0.69%) to a reported US$287 per thousand sq. ft. (msf) on Nov 4, but is $17 (6.30%) higher than the price a year ago of $270/msf.

For October as a whole, the composite averaged $297/msf, up $1 (0.34%) from September’s average of $296/msf, and $20 (7.22%) higher than the average in the same month last year of $277/msf, according to Random Lengths data. The average for 2010 was $324/msf, $65 (25.10%) higher than the average in 2009 of $259/msf.

In OSB markets, some mills reduced production on poor retail demand, and talk circulated of unannounced curtailments and the possibility of further production cuts around Thanksgiving and the year-end holiday.

The reported price of the benchmark grade, OSB North Central 7/16 in., dropped $3 (1.60%) to $185/msf, but was $5 (2.78%) higher than the price reported at this time a year ago of $180/msf.

The OSB composite held at $201/msf for a second week, $1 (0.5%) above the year-ago price of $200/msf.

Southern plywood prices continued to cover an unusually wide range, and some double-digit counters were reported to move blocks. Mills generally pushed quotes closer to previous levels once order files were booked into the week of Nov. 14.

The reported price of Southern plywood Westside CDX 15/32 in. 3-ply dropped $5 (1.69%) to $290/msf, but was $22 (8.21%) higher than the price reported at this time a year ago $268/msf.

Southern plywood Westside CDX 15/32 in. 4-ply fell $5 (1.67%) to $295/msf, but was $21 (7.66%) above the year-ago price of $274/msf.

Southern plywood eastside CDX 15/32 in. 3-ply dropped $10 (3.03%) to $320/msf – up $45 (16.36%) from the price reported last year at this time ($275/msf).

The Southern plywood composite dropped $6 (1.39%) to $426/msf, but was $37 (9.51%) above the price reported at this time last year of $389/msf.

Producers held prices, relying on long-term contracts, the prospect of production curtailments and modest order files, reported Random Lengths. Sales of truckloads of ½ in. 4-ply sheathing were reported at $311/msf or higher and mills generally quoted at $5-$10 above reported levels.

The reported price of Western Plywood Coast CDX 1/2 in. 4-ply sheathing held at $311/msf for a second week, and was $48 (18.25%) higher than the price reported at this time last year of $263/msf.

The Western fir plywood composite also held at the previous week’s level of $456/msf, and was $32 (7.55%) above the price reported at this time last year of $424/msf.

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