Softwood lumber prices rise further
October 6, 2021 By Madison's Lumber Reporter
As the end of September approached, the demand and sales of construction framing dimension softwood lumber commodities improved significantly, enough for prices to rise somewhat. This is an unusual time of year, after Labour Day, for solid wood building material prices to be rising. However, the current trend does echo the price movement of last year.
There was a brief pause the previous week as this price remained flat, then for the week of Sept. 24, 2021 the price of Western S-P-F 2×4 #2&Btr KD (RL) rose to US$510 mfbm, a +$30, or +6%, increase from the previous week when it was $480. That week’s price was up by +633, or +14%, from one month ago when it was $447.
Overall supply of Western S-P-F dimension lumber decreased noticeably with each passing day thanks to consistent takeaway and the curtailed production schedules of many B.C. producers.
“Panel traders bemoaned another week of flat prices, while burgeoning demand exposed logistical problems for lumber and studs.” — Madison’s Lumber Reporter
Solid demand for Western S-P-F lumber and studs in the U.S. persisted this week. Sellers reported consistent inquiry and takeaway from key construction markets across the country. Sawmills were booked between two- to three-weeks out, with shipping delays scuttling any notion of prompt wood and adding up to a fortnight to established order files.
Both primary and secondary Western Spruce-Pine-Fir suppliers reported robust demand this week. Sawmill order files were two- to three-weeks out as any available prompt wood was gobbled up by ravenous customers.
“Strong demand for WSPF studs was evident again this week. Sawmills leaned in to double-digit price jumps. Buyers were busy inquiring and pursuing volumes as field inventories remained lean. Stud mill order files were two to three weeks out in most cases, with prompt offerings increasingly limited. ” — Madison’s Lumber Reporter
When compared to the same week last year, of $960, the price of Western S-P-F 2×4 for the week of Sept. 24, 2021 was down by -$450, or -47%. Compared to two years’ ago when it was $376, that week’s price was up by +$134, or +36%.
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