Random Lengths North American structural panel composite drops US$6 to US$381/msf in week of Oct. 18; southern plywood prices fall in double digits as buyers seek downside protection with deep counters to quoted levels
October 20, 2013
– The Random Lengths North American structural panel composite dropped US$6 (1.55%) in the week ending Oct. 18 to $381 per thousand sq. ft. (msf), and was $23 (5.69%) lower than the price reported at this time last year of $404/msf.
In OSB markets, a stalemate situation developed as producers held to their quotes, although Random Lengths noted that some large blocks were sold at discounts to published levels late in the week in eastern Canada and the Southeast.
The price of the benchmark grade, OSB North Central 7/16 in., held at $264/msf for a second week, and was $38 (12.58%) lower than the price reported a year ago of $302/msf.
The OSB composite dropped $2 (0.69%) from the previous week to $286/msf, and was $43 (13.07%) lower than the year-ago price of $329/msf.
Southern plywood prices softened as buyers countered producers’ quotes to try and secure some downside protection, Random Lengths reported. Dealers only made essential purchases, and these were often from secondaries that were able to offer competitive prices and quicker shipments. By the end of the week, most mills were booked into the week of Oct. 28, although some still had loads available for shipment in the week of Oct. 21.
The reported price of Southern Plywood Westside CDX 15/32 in. 3-ply dropped $10 (2.56%) after two consecutive weeks at $390/msf, and was $18 (4.52%) below the price reported at this time last year of $398/msf.
Southern Plywood Eastside CDX 15/32 in. 3-ply dropped even more sharply, by $15 (3.61%), to $400/msf - down $15 (3.61%) from the price reported at this time last year of $415/msf.
The reported price of Southern Plywood Westside CDX 15/32 in. 4-ply dropped $10 to $385/msf after two weeks at $395/msf, and was $13 (3.27%) below the year-ago price of $398/msf.
The Southern pine plywood composite slid $8 (1.44%) to $548/msf, but was $12 (2.24%) higher than the price reported at this time a year ago of $536/msf.
Western plywood buyers generally held back and only bought their minimum requirements, and prices slipped as a result, reported Random Lengths. Some mills held to within $5 of published levels, but others accepted counters in double digits – while secondaries often priced more aggressively than producers.
The reported price of Western Plywood Coast CDX ½ in. 4-ply dropped $14 (3.37%) to $402/msf, but was $32 (8.65%) higher than the price reported last year of $370/msf. Random Lengths noted that while some sales were in a $400-410 range, there were reports of orders booked in the $390s.
The Western fir plywood composite dropped $7 (1.17%) to $592/msf, but was $10 (1.72%) higher than the price reported at this time last year of $582/msf.