Lumber Availability Remains Extremely Tight

It’s a red-hot market on all sides with a great deal of stress and uncertainty felt by everyone involved. We are looking into the near future to try to help our customers, whether it’s on the distribution side or the end-user as the strain is on the supply chain right now.

Lumber availability remains extremely tight on both the wholesale side and at the mills. With this lack of availability, we have seen a steady increase in prices over the past 6-weeks or more. Although some markets were hoping to see a reprieve over the next few weeks, mill order files remain very strong as forecasts continue to get pushed out. Mills are quoting into late August and early September for delivery. On top of this, we are seeing a real crunch on transportation, both in trucking and railside.

We are encouraging everyone to look at their late August and early September needs to get them covered now as availability continues to hamper inventories.

At these levels, in the short-term, we are still seeing some liquidity because of the committed jobs, but looking into the medium and longer-term, we may see potential projects get put off in the hopes of better pricing and more economically conducive conditions.

For up to Date Pricing and Availability, Contact CEWP Today


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Dimensional Lumber

2x4

Availability on 2x4 in western Canada remains quite sparse and limited for prompt. Some smaller mills, if any material is available, are asking a huge premium and they are achieving these numbers due to lack of supply on both the wholesale side and at the larger mills.

2x6

Availability on 2x6 remains similar to 2x4. The spread has definitely narrowed between the two products. Although 2x6 availability is marginally better, mills are still quoting 4 to 6-week delivery. Some are very reluctant to quote with very limited tallies as well.

2x8, 2x10, & 2x12

On the run-up for 2x4, mills have diverted some production capacity in that direction, leaving the market for wide dimensions in a very tight standing in terms of availability.

There are difficult logging restrictions in the west as a wet few weeks on both sides of the border have made it difficult to get to the Spruce, putting pressure on log supplies. As a result, we are seeing more Fir run through, so the longs have had a very difficult showing in inventories.

2x10

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2x12

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Studs

Stud availability remains difficult with prompt being almost entirely unavailable. The wholesale and distribution community has stepped back from stud buying as prices have spiked. There is not much on offering lists from distributors and secondaries as the distribution channel becomes shaky from spec-buying at these numbers.


Treated Lumber

On the treated market, cash availability is almost completely non-existent. Those who participated in bookings are receiving priority, but order files from the mills are still 4 to 6 weeks out as production and shipping remain an issue.


MSR Lumber

All MSR items remain difficult to source right now. Prompt availability is virtually non-existent in 2100 and 1650, with longs being even more difficult to find.

We are doing our very best to keep our inventory stocked but prompt availability is now at 2-weeks out from our distribution yards. Trucking availability waiting on incoming stock, as well as increased demand for prompt LTL MSR, is making it difficult to fill orders quickly. Mill order files are sparse at best with quotes out 5 to 6-weeks, limited tallies, and little to no flexibility.


Panel Products

Plywood

Plywood order files have touched October as mills try to keep up with demand. Buyers are now having to consider October needs now and are urged to cover off.

We are seeing a slightly quieter week as some buyers are covered off, but we do want to make everyone aware that any new cash business is likely shipping in October.

Trucking is still an issue as there is a delay with delivery out 1 to 2 weeks past the quoted ship weeks. There is still an upside potential for plywood. Market news needs to hit buyers for their reaction to make it happen.

OSB

We are looking at the end of September on OSB delivery. There were some major moves beginning the middle of last week with mills pushing off the market a number of times and coming back on at substantially higher numbers, setting a record for week-over-week gains that had not been seen since 2005. The market has participated at these new levels with supply chains running very light. It appears we will be set at these prices at least until October, if not for the rest of the year.

Prompt availability for OSB is also extremely difficult as the distribution networks have been picked clean and await shipments into August and September.


Trusted Partnerships

We are in the market every day to understand and anticipate your business needs. We understand that a quality product goes beyond just wood, and will work diligently to provide you with innovative product and services solutions.

Contact Our Team Today

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