No End in Sight to the Surge in Market Activity

We have wrapped up the shortened week following the long weekend, it ended being another robust week, and as a result, we saw print up yet again. Some were more shocked than others to see the strength on print last Friday after another strong week. There seems to be no end to this surge in activity.

With that said, we feel like we are seeing some frustration from our customer base with the constant pushing up on lumber prices. We are seeing price-fatigue from some who are exasperated wondering when this will finally plateau.

At this point in time, as the week starts, we are seeing sparse lists and reports that mills are still fairly busy, although not at the same frantic pace as we have seen. Interest seems to be primarily coming from the US with more of a reluctant pull from the Canadian business sector.

We Are Your Lumber Experts

This market continues to pose significant challenges, whether it is the cost structure or availability, so please reach out to your trader with any questions or concerns you may have. We will always do our best to provide guidance on navigating through these difficult times.

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Dimensional Lumber

Summary

The dimensional market printed up strong yet again across all dimensions. We continue to see a lack of availability from most mills and those mills that were able to come up with prompt material, found significant premiums on their sales into the open market. Prompt material is the key factor in trying to achieve those numbers.

2x4

There are still strong sales on 2x4 #2&btr with an order file pushing into September for many of the larger mills, where regional mills are coming on and off the market with small volumes and achieving relatively healthy premiums above print levels.

2x6

The 6” market is working closely with 4” as prices are lagging slightly in some areas. We are seeing strong value in 16’, along with 10’ and 12’ material. We expect limited availability on 2x6 to continue along with the general market trend.

2x8

There was not much attention on 2x8 last week and it continues to be difficult to find. There is not much on mill lists to start the week, which we expect will continue in the short term.

2x10

Moving right along with the 8” product lines, mills have decent amounts of 2x10 already contracted out. Cash wood that is popping up on lists appears to move fast as demand is outpacing supply.

2x12

The 2x12 market is similar to the past few weeks. There is not much available on lists and covering demand is proving to be a challenge.


Studs

Stud availability remains tight. Lists are being snapped up as soon as offerings show up. Specifically, 2x4 92s and 2x6 104s are tougher to come by, and 2x4 9’ has not been as difficult as a few more of those have popped up in stud grade. Overall, there is strength in all lengths and difficulty in locating material.


Treated Lumber

There is not too much to discuss regarding the treated market, as there has not been much movement with respect to that material. Mills are still doing what they can to push Whitewood through the cylinders and out to the consumers and end-users. Demand continues to be strong as mills are finding new pricing levels and introducing these new prices to the market. We have seen prices push up and the hope is they will stabilize along with the current Whitewood pricing for input costs.


MSR Lumber

MSR availability remains extremely sparse across all items with longs being especially difficult and almost non-existent. Two items, 2x6 and 2x4 2100 longs are both almost impossible to find. Stay ahead of your MSR needs as LTL MSR out of inventory is still looking out at 2 to 4 weeks for delivery.


Panel Products

Summary

The panel market again displayed a contrast over the week with respect to plywood and OSB.

Plywood

We saw print flat while the plywood market took a bit of a break. Order files have extended through the first and second weeks of October. Along with that order file, come reports of mills being late, in some cases 1 to 2 weeks, and potentially pushing into 3 weeks behind on shipping into certain marketplaces, putting additional pressure on the general market.

The feeling for plywood is that it could be poised for further activity in the near term as people start to realize they need to look at their fall needs. On the back of the movement in OSB and the continued pressure on lumber, we could see this happen in the next couple of weeks.

OSB

The pressure remains on OSB as order files are now into October production. We are seeing demand vastly outpacing supply. We have seen a number of large buyers in the US forced to step in at these levels and take decent volumes, which has only added fuel to the fire.

We are feeling like the next few months, at the very least, we will be into these prices, so we urge caution on both sides to ensure you are covered into October with an eye on an eventual correction in the OSB market back down to historic levels. While it may not be this year, it is certainly a possibility in the coming months of the new year.


We're Your Lumber Experts

Lumber is what we do! Our traders are in the market all day, every day. Let us share our knowledge with you, if you have any questions, never hesitate to give us a call.

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