Tighter availability due to production restraints and reduced inventories in the field underpinned framing lumber prices. The need for dealers and distributors across the U.S. and Canada to replenish depleted stocks fed a steady, if unspectacular, flow of orders back to the mills. Traders noted that production and demand were close to a balance in most markets. However, finding coverage was problematic, as mill offerings often didn't match up with customers' requirements. By species, trading was uneven.
Week Aug 15
Week Aug 8
Year Ago
2007
Random Lengths Framing
Lumber Composite Price*
$282
$277
$293
KD Western S-P-F #2&Btr 2x4 R/L
Mill Price
283
272
273
KD Eastern S-P-F #1&2 2x4 R/L,
delivered Great Lakes
363
360
350
Green Douglas Fir Std&Btr 2x4
R/L (Portland)
185
185
257
Southern Pine (Westside) #2 2x4 R/L
306
299
269
KD Coast Hem-Fir Std&Btr 2x4 R/L
250
245
265
Ponderosa Pine (Inland) #2&Btr
1x12 R/L
440
445
670
* Weighted
average of 15 key items
Structural panel markets were mixed, with OSB the best performer. OSB
prices continued to work higher. Constrained supplies due to production
cutbacks were a dominant factor. Southern Pine plywood producers held
quotes near last week's levels and moved enough volume to keep lead
times in a 5-10-day range on most items. The western Fir plywood market
lost momentum, although a few mills still kept sales on pace with
production.
