Random Lengths North American structural panel composite advances US$6 in week of April 25 to US$365/msf; OSB composite climbs by most since July 2013 to US$251/msf, reported price of Western Plywood Coast CDX ½ in. 4 ply jumps US$18

LOS ANGELES , April 27, 2014 () – The Random Lengths North American structural panel composite gained US$6 (1.67%) to reach $365 per thousand sq. ft. (msf) in the week ended April 25, but was $125 (25.51%) lower than the price a year ago of $490/msf, Random Lengths reported in its weekly panel market report.

In OSB markets, traders reported the best activity for months, and prices increased in a $5-15 range in most regions. Traders remained cautious, preferring to cover immediate needs rather than purchase heavy volumes, reported Random Lengths. Western markets saw the strongest activity, and sales were weakest in eastern Canada.

The reported price of the benchmark grade, OSB North Central 7/16 in., advanced $8 (3.81%) to $218/msf, but was $157 (41.87%) lower than the price reported at this time last year of $375/msf. Random Lengths noted that mill prices covered a wide range in the North Central region, but generally finished $7-8 higher.

The OSB composite increased by its highest margin since July 2013, gaining $6 (2.45%) to reach $251/msf, but was $178 (41.49%) lower than the year-ago price of $429/msf.

Southern plywood producers extended order files and increased quotes, reported Random Lengths. Improving weather in the North, tornado warnings in the South and Midwest, and perceived price advantages to Western plywood all helped to keep sales ahead of production. In addition, price increases announced by engineered wood manufacturers led to a pick-up in demand for those products and contributed to tighter availability of veneer and some plywood items.

Gains on 15/32 in. 3- and 4-ply were generally on a $5-10 range, and the reported price of Southern Plywood Westside CDX 15/32 in. 3-ply climbed $7 (1.85%) to $385/msf – down $110 (22.22%) from the price reported at this time last year of $495/msf.

The reported price of Southern Plywood Eastside CDX 15/32 in. 3-ply advanced $13 (3.17%) to $423/msf, $107 (20.19%) below the price reported a year ago of $530/msf.

Southern Plywood Westside CDX 15/32 in. 4-ply moved $7 (1.85%) higher to $385/mbf, but was down $115 (23.00%) from the price reported at this time last year of $500/msf.

The Southern pine plywood composite gained $6 (1.10%) on the week, climbing to $553/msf, but was $101 (15.44%) below the year-ago price of $654/msf.

Western plywood sales were slow at the start of the week, but by Wednesday and Thursday mills were reporting some of their busiest days in weeks, reported Random Lengths. Buyers were eager to cover their needs as they saw mills extending order files into mid-May, and several prices increased by double digits. Higher SYP plywood and OSB prices also encouraged buyers to step off the sidelines.

The reported price of Western Plywood Coast CDX ½ in. 4 ply jumped $18 (4.65%) to $405/msf, but was down $45 (10.00%) from the price a year ago of $450/msf. Random Lengths noted that ½ in. 4-ply sold readily at around $405/msf with sales booked in late trading at $410/msf.

The Western fir plywood composite ended the week $8 (1.40%) higher at $580/msf, but was down $57 (8.95%) from the price reported at this time last year of $637/msf.

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