Lumber trading across North America slowed slightly from its hot pace of last week, however continued strong demand was enough to keep prices stable or even higher, writes Keta Kosman in
Madison’s Lumber Reporter https://madisonsreport.com.
The star this week was Southern Yellow Pine KD 2x6 #2&Btr on the west side, which gained an astonishing $20, or 5.6 per cent, to US$355 mfbm.
Two things are surprising about this: an increase in ordering now is a few weeks ahead of what would be traditional in the US, and the scope of the jump. As a generally domestic US product, southern yellow pine prices are not as volatile as those of Western Spruce-Pine-Fir -- which trade to the US, Canada, as well as overseas to Japan and China.
A run-up of lumber prices in traditionally very price-stable areas of the US bodes quite well indeed for home building and renovation in that country this year.
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Otherwise the solid wood market was quite tranquil, with some mills building order files and others keeping that stable. Most producers reported having lumber or panel orders booked into the beginning of February while others were working to one week out only.
Panel, particularly Oriented Strand Board, might be showing some weakness in the east, while OSB and plywood sellers in the west were able to push prices up slightly. Plywood delivered into central Canada managed to tick up $2. However the benchmark panel commodity, OSB 7/16" Ontario, lost another $7, or 3.1 per cent, on strong counter-offers from buyers, to end the week at C$220.
The annual BC Truck Logger's Association meeting was held in Vancouver, BC, this week to an oversold, and enthusiastic, crowd. Equipment and service suppliers mingled with logging contractors and lumber producers as decision makers and industry insiders delivered excellent presentations and projections. The proceedings from this important event will be covered in next week's issue of Madison's Lumber Reporter.
Canfor Corp. (
TSX: T.CFP,
Stock Forum) announced Tuesday an $8 million upgrade to its Fort St. John, BC, sawmill.
As well this week,
Canfor Corp. and
Canfor Pulp Products Inc. (
TSX: T.CFX,
Stock Forum),
Interfor Forest Products Ltd. (
TSX: T.IFP.A,
Stock Forum), and
West Fraser Timber Co. Ltd. (
TSX: T.WFT,
Stock Forum) all released the dates of their 4Q and full-year 2013 financial result announcements. Expectations, for the lumber side at least, are for rather glowing 4Q financials.
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Keta Kosman
Publisher
Madison's Lumber Reporter
604 984-6838
www.madisonsreport.com