The upcoming combined Thanksgiving / Columbus Day holidays in Canada and the US, respectively, did little to slow trading momentum of lumber and panel commodities this week, writes Keta Kosman in Madison’s Lumber Reporter
https://madisonsreport.com.
Although players did say that business was pretty slow until Wednesday, when orders started coming in earnest.
The sustained demand was enough to keep prices on most solid wood products generally flat. In normal North American seasonal lumber markets, by this time of year prices would be softening considerably.
However, sawmills across the continent are reporting order files into early November. Lumber manufacturers were busy running wood ordered in the past two weeks so had little incentive to entertain counter-offers by builders, stocking wholesalers, and retailers.
Customers gruffly accepted this fact, but decided to hold off placing new orders for wood they wouldn't receive for three or four weeks anyway. It is their hope that prices will drop by then.
Lumber manufacturing companies making moves this week are
Universal Forest Products Inc. (
NASDAQ: UFPI,
Stock Forum) and
Stella Jones Inc. (
TSX: T.SJ,
Stock Forum). Universal announced Wednesday an agreement, through one of its subsidiaries, to acquire some assets of SE Panel and Lumber Supply. For its part Stella-Jones is further expanding its North American network for supplying utility poles and railway ties with the purchase of wood treatment facilities in Oregon, Nevada, and Arizona for US$57 million, including US$24 million in working capital, the company announced Tuesday.
The United Steelworkers' Wood Council has put its ongoing mediation with
Canfor Corp. (
TSX: T.CFP,
Stock Forum) “on hold” a union representative told Madison’s Thursday, although the union has not yet asked the mediator to “book out”.
In the meantime, USW and Interior Forest Labour Relations Association (IFLRA) are scheduled to talk October 23 and 24. IFLRA negotiates for employers in the Southern Interior region of British Columbia. Member companies include Tolko, West Fraser, and Weyerhaeuser.
Follow us on Twitter!
https://twitter.com/LumberNews
Keta Kosman
Publisher
Madison's Lumber Reporter
604 984-6838
www.madisonsreport.com