A decidedly bearish tone pervaded framing lumber markets, as downside price pressure intensified. Deep double-digit cuts not seen in more than a year developed, while failing to draw in much buying. Buyers widely sensed additional downside risk, and limited purchases to must-have items. The failure to jump-start mill sales after the Fourth of July, the sharp discount in futures compared to cash, and a weak June housing starts report were all cited as factors promoting fear and caution.
This Week Jul 20 |
Last Week Jul 13 |
Year Ago 2017 |
|
Random Lengths Framing Lumber Composite Price* | $515 | $532 | $422 |
KD Western S-P-F #2&Btr 2x4 R/L Mill Price | 555 | 587 | 414 |
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes | 640 | 660 | 501 |
Green Douglas Fir Std&Btr 2x4 R/L (Portland) | 540 | 555 | 465 |
Southern Pine (Westside) #2 2x4 R/L | 483 | 504 | 380 |
KD Coast Hem-Fir #2&Btr 2x4 R/L | 570 | 585 | 425 |
Ponderosa Pine (Inland) #2&Btr 1x12 R/L | 775 | 775 | 690 |
* Weighted average of 15 key items |
Random Lengths Panel Market Report
The price arrow continued to point downward in structural panels, although discounts in OSB were much sharper than those seen in plywood. OSB producers in the South took the most aggressive approach to sales, and reported prices finished $30 lower across that region. In Southern Pine plywood, an increase in sales tapered negative perceptions, but prices of rated sheathing slipped further. Western Fir plywood prices slipped, but continued to show more stability compared to Pine plywood and OSB.
(f.o.b. mill prices) | This Week Jul 20 |
Last Week Jul 13 |
Year Ago 2017 |
Random Lengths Structural Panel Composite Price* | $502 | $520 | $448 |
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood | 455-495 | 475-515 | 377-402 |
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood | 460-500 | 480-520 | 382-407 |
Western 1/2-inch 4-ply rated sheathing plywood | 515 | 522 | 500 |
North Central 7/16-inch Oriented Strand Board | 395 | 415 | 395 |
*Weighted average of 11 key items |