Lumber sales volumes softened slightly this week as the supply chain digested orders recently made, writes Keta Kosman in Madison's Lumber Reporter
https://madisonsreport.com.
Inventories, however, remain so weak -- especially for this time of year -- that producers were able to hold firm on current prices levels.
Most customers have been buying for immediate needs only, thus were so strapped for supply that counter-offers were roundly ignored. While order files at sawmills were shrinking compared to a couple of weeks ago, as manufactured product is moved to customers, most producers claimed enough bookings to carry them through to the end of this year. As a result, prices are not expected to adjust downward significantly before 2013 draws to a close.
As explained last week, the US Thanksgiving holiday usually signals the beginning of downtime at North American solid wood manufacturers, as operators take much-needed maintenance curtailments and compile their year-end inventory data. The majority of American sources told Madison's Lumber Reporter Thursday to make its market survey calls early on next week, or risk missing everyone at evacuated offices.
The price of benchmark dimension lumber commodity Western Spruce-Pine-Fir KD 2x4 #2&Btr remained firm at US$384 mfbm, a $48, or 12.5 per cent, increase over the same time last year when that price was US$336.
Benchmark panel item Oriented Strand Board 7/16" Ontario price was C$230 msf, a $105, or 31.3 per cent, drop over the same time last year.
Players were happy to report only minor issues receiving cars from
Canadian National Railway Co. (
TSX: T.CNR,
Stock Forum), but expressed concern of increased tightness of supply of both rail cars and trucks as Christmas items really begin moving on the roads and rails across the continent.
The United Steelworkers late last week announced a settlement with
Canfor Corp. (
TSX: T.CFP,
Stock Forum) in the northern interior, but expressed dismay Friday that mediation with the IFLRA in the southern interior --
West Fraser Timber Co. Ltd. (
TSX: T.WFT,
Stock Forum), and
Weyerhaeuser Co. (
NYSE: WY,
Stock Forum)-- had not yet concluded.
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