Random Lengths North American framing lumber composite climbs US$10 in week of Sept. 13 to US$364/mbf, Southern pine prices gain in double digits
September 16, 2013
– The Random Lengths North American framing lumber composite gained US$10 (2.82%) in the week ending Sept. 13, to reach $364 per thousand board ft. (mbf), up from $354/mbf in the week before and $30 (8.98%) higher than the price reported at this time last year of $334/mbf.
The weekly gain reflected a pick-up in sales across most framing lumber sectors, although buyers remained cautious following the lumber market's collapse in the second quarter of the year. Western SPF markets found additional support from recent offshore sales, reported Random Lengths, and many mills were quoting shipments for early October by the end of the week. Producers pushed quotes higher on sales to the U.S., and #2&Btr 2x4 reached the low-to-mid $340s.
The reported price of KD Western SPF #2&Btr 2x4 rose $7 (2.09%) to $342/mbf, and was $44 (14.77%) higher than the price reported at this time last year of $298/mbf.
Sales were steady at Eastern SPF mills, reported Random Lengths, with some seeing a late-week improvement as lumber futures prices gained ahead of the close of the September futures contract on Sept 13 at $344/mbf. Eastern producers were able to lift quotes but found little support from buyers at the higher levels, reported Random Lengths. The reported price of KD Eastern SPF (delivered Great Lakes) #2&Btr 2x4 random gained $7 (1.64%) on the week to reach $435/mbf, and was $33 (8.21%) higher than the price reported at this time last year ($402/mbf).
In Southern pine markets, sales improved as buyers came forward more frequently to fill their near-term needs, and mills raised quotes in response, reported Random Lengths. The strongest gains were seen on the westside, where prices of #2 2x4 and the wider widths increased by double digits.
The reported price of KD Southern Pine (Westside) #2 2x4 random jumped $15 (4.04%) to $386/mbf - up $6 (1.58%) from the price a year ago of 380/mbf.
Sales of Douglas fir were steady, and this kept upward pressure on prices, reported Random Lengths. Sales were frequent as buyers worked to maintain lean inventories, and customers in Southern California, the Northeast and the Pacific Northwest provided consistent demand.
The reported price of Green Douglas Fir (Portland rate) Std&Btr 2x4 rose by $10 (3.31%), reversing a three-week downward trend, to reach $312/mbf, and was $17 (5.76%) above the price reported at this time last year of $295/mbf.