It’s the final full week prior to the holiday season and the market continues to be met with very mixed signals and much confusion.

We are once again seeing a disconnect as futures have reversed course and gained momentum prior to sliding off slightly on Tuesday. Print was down last week and mill offerings are all over the board.

Some mills are still holding firm at numbers, even in the face of print coming off. Others have reduced their pricing levels. We are still seeing shorting taking place, and in some instances, it is fairly significant on select items.

This Week in Wood Holiday Schedule

We will be taking a 2-week hiatus to enjoy the holiday season but we will be back in full swing on January 8th. Have a fantastic holiday that is filled with cheer.


Chart icon down.v2

Great Pacific Ends Privatization Deal Sending Canfor Shares into a Nosedive

As minority shareholders decline to take the company private, Canfor shares dropped 20%. Support for a $16 per share bid fell short on the approval vote as only 45% supported the move.

Read More.

 

House.v2

Case-Schiller Home Price Index in the US Reached All-Time High

With home prices up across the board in the US, it bodes well for the lumber market overall.

Read More.

 

Tree Icon.v2

BC Premier Vows Help on the Way for Contractors Affected by Forestry Strike

Premier Horgan, of BC, is assuring truck loggers on Vancouver Island that aid is near for those impacted by the 5-month strike that affected the area. Plans are being discussed and could be announced as early as next week or into the new year.

Read More.

 

Pine Beetle

Weather and Spruce Bark Beetle Infestations Cause for Concern on European Timber

With extensive damage to European forests by growing numbers of the Spruce Bark beetle as well as harsh storms and drought, the global lumber markets will be affected in untold ways.

Read More.

 


Dimensional Lumber

Summary

The dimensional market continues to stumble along. There seems to be a sense that the market wants to hold prices at these levels, yet consumer sentiment and confidence seems to be dwindling as we head towards the new year.

Mills with prompt availability are willing to listen to offers. As well, there is limited railcar supply and some mills, especially in BC, are having difficulty with that. Now, some are very interested in truck shipments to move product.

2x4

There are reasonable mill offerings seen from the larger mills as well as the regional distributors. Pricing is ranging within a $20 band, yet again there is evidence of shorting from some who feel that downward pressure is on the way in the near future.

2x6

We are still seeing a little more demand for 16’ and less availability at the mill level. The 16’ products continue to show a significant premium over randoms. We anticipate this continuing into the short term, as 2x6 production seems to be more muted than 2x4 material.

2x8

The 2x8 #2&btr market has held firm. The 16’ products are showing a fairly strong premium over randoms. A balanced supply and demand situation looks to be quite strong and we are seeing some more availability on 18’ and 20’ products at the moment, which is a positive sign that may help to pull back pricing.

2x10

The 2x10 market is very similar to 2x8 as it is fairly flat and reasonably balanced. We have not seen a strong interest in 2x10, with no real areas of concern at this point in time.

2x12

There is a little more availability on 2x12 overall this week. We are seeing better availability at a few mills that have not participated in much 2x12 production in the last few runs. That has led to a more balanced market with 2x12 pricing remaining quite strong.


Studs

The stud market is pretty flat with decent availability on most trims, however, 2x6 92s seem to be tight.


MSR Lumber

In MSR, the market continues to show a narrowing spread between 2x4 1650 and #2&btr, with 1650 being a viable option in many cases. We are also seeing more 2x4 1650 accumulate at some mills in Western Canada. Meanwhile, 2x4 2100 and all 2x6 MSR remain fairly tight, with longs continuing to be extremely difficult to find, which has been the case for much of 2019.

We are beginning to notice more Douglas Fir MSR available, especially in Western Canada. This is expected to continue through 2020.

Demand in 2x8 1950 has declined over the last couple of weeks so we are seeing a little more availability out of some Western Canadian mills. But for the most part, 2x8 1950 remains in status quo from last week.


Panel Products

Summary

The panel market overall has quieted on both fronts as we reach the end of the year.

Plywood

Plywood has continued to display flat pricing. The value of the purchasing opportunity is still quite attractive. Numbers are still near 2-year lows and the feeling is still that prices will begin to move upward as we get into the new year, it is simply a matter of when. There are some good opportunities to step into plywood if you are looking toward your spring needs.

OSB

There has been a slide on OSB week to week since the beginning of the month, as we approached a short file at one of the major mills in Western Canada. Availability is two weeks on the short side and into the new year on the long end. The feeling is that we will see more softness over the next week or two but the market should improve as we get into January.

Rail shipments into the US are extending into late January so buyers will have to step in and cover off some of those needs. There has been plenty of production coming out of the market and right now we are dealing with the end of the year and the last of the demand, which should see improvement in the new year.


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

 

It’s the final full week prior to the holiday season and the market continues to be met with very mixed signals and much confusion.

Learn more...

 


 

See what you've missed...

View Archive