Madison’s Lumber Reporter in Around Town
Your Weekly Construction Briefing
Softwood lumber prices firmed up yet more in late October. Based on the regular historical seasonal cycle, it is not normal for lumber prices to be increasing in autumn. The price of the benchmark construction framing dimension Western Spruce-Pine-Fir 2×4 #2&Btr was US$630 mfbm at the end of October, which was up by $35 from the previous week and up $142 from the end of September when it was $488.
In comparison, in 2020, the year started at approximately US$400 and by June 2021 was over US$1600 mbf before dropping back to $400 by late summer 2021 and then climbing again.
Canadian suppliers of Western S-P-F were busy this past week with reportedly relentless demand and sawmill order files were well into November. Lack of labour and equipment are causing delays up and down the supply chain.
In the week ending October 29, most construction framing dimension lumber prices flattened out, to finish the week at close to the levels of one year ago. As October came to a close, Canadian Western S-P-F sawmills responded to steady demand with mostly even pricing. As order files extended into the last week of November, manufacturers restricted their production volumes due to high log costs.
Western S-P-F sawmills in the United States kept asking prices flat for the most part. Several key construction markets suffered their first real bout of inclement autumn weather. The earliest shipment available from producers was for November 15th, but transportation troubles added roughly two weeks to that timeline.
Excerpts from madisonsreport.com.