Random Lengths North American structural panel composite drops US$8 to US$369/msf in week of Nov. 1; southern plywood buyers take advantage of lower price levels after four weeks of decline

Wendy Lisney

LOS ANGELES , November 4, 2013 (Industry Intelligence) – The Random Lengths North American structural panel composite has dropped for a third consecutive week, by US$8 (2.12%) in the week ending Nov. 1 to $369 per thousand sq. ft. (msf) from $377/msf in the previous week. Compared to the price at this time last year of $422/msf, the composite is $53 (12.56%) lower.

In OSB trading, prices softened in most regions as producers with short order files reduced quotes or negotiated counters to encourage buyers, Random Lengths reported. The lower prices were met with a limited response, as most buyers were only interested in covering immediate needs and were unwilling to purchase large volumes without deeper price cuts.

The price of the benchmark grade, OSB North Central 7/16 in., dropped $9 (3.41%) to $255/msf after holding at $264/msf in the three previous weeks, and was $70 (21.54%) lower than the price reported at this time a year ago of $325/msf.

The OSB composite dropped $7 (2.46%) to $277/msf, and was $83 (23.06%) below the year-ago price of $360/msf.

Southern plywood prices drifted lower, although Random Lengths noted that the tone of the market was more upbeat by the end of last week with several producers reporting sales that exceeded production. Buyers stepped off the sidelines to take advantage of price levels after four weeks of decline, and most producers were reporting order files booked into the week of Nov. 11 by Friday, Nov. 1. Mill quotes rebounded to midweek levels late in the week and some sales were reported at that level, although most orders were at modest discounts.

The reported price of Southern Plywood Westside CDX 15/32 in. 3-ply dropped $10 (2.70%) to $360/msf, marking the third consecutive week of $10 declines. Friday’s reported price was $40 (10.00%) lower than the price reported a year ago of $400/msf.

Southern Plywood Eastside CDX 15/32 in. 3-ply slid $5 (1.28%) on the week to $385/msf, and was $35 (8.33%) lower than the price reported at this time last year of $420/msf.

The reported price of Southern Plywood Westside CDX 15/32 in. 4-ply fell $10 (2.70%) to $360/msf – down $48 (11.76%) from the price reported a year ago of $408/msf.

The Southern pine plywood composite fell $8 (1.50%) to $527/msf, down from $535/msf in the week ending Oct. 25, and was $16 (2.95%) below the price reported at this time a year ago of $543/msf.

Western plywood sales and prices were uneven, with some mills holding to quotes and others pricing aggressively to extend order files, reported Random Lengths. The deepest discounts were available early in the week, and by Friday a few mills had extended order files into the week of Nov. 18 – although several still had loads available for prompt shipment.

The reported price of Western Plywood Coast CDX ½ in. 4-ply dropped $11 (2.84%) to $377/msf, and was $8 (2.08%) lower than the price reported at this time last year of $385/msf. Random Lengths noted that sales were in a $370-390 range.

The Western fir plywood composite dropped $8 (1.37%) to $576/msf, and was $14 (2.37%) lower than the price reported at this time last year of $590/msf.

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