Madison’s Lumber Reporter — Given the wee surge last week, North American softwood lumber prices have bounced from lows of two weeks ago. Whether they will remain there in the short term, or if restricted supply will drive another surge upward, remains to be seen. The upheavals of the past month or two are far from over, as Madison’s Lumber Reporter said.
The wholesaler price of several benchmark softwood lumber commodities last week recovered losses from two weeks previous, to land at levels of early April. Prices of benchmark softwood lumber commodity item Western Spruce-Pine-Fir KD 2×4 #2 & Btr (RL) kissed exactly those of the same week last year, at US$336 mfbm (FOB sawmill).
In addition to the sudden changes in business and indeed life, brought on by this global virus pandemic, right now the northwest of Canada is experiencing some severe flooding. A late spring break-up has brought large volumes of snow-melt and ice down the immense rivers of northern Alberta and British Columbia. While the Canadian west coast sawmilling industry always welcomes with glee the spring freshet on the mighty Fraser River, there is a temporary lull in log hauling and lumber deliveries as the usual floods across highways and rail lines arrive.
Improving on increases made the previous week, for the week ending April 24, 2020, benchmark Western Spruce-Pine-Fir 2×4 prices were US$336 mfbm, up +$20, or +6%, from the previous week. Last week’s price was down -$20, or -6%, from one month ago. Compared to one year ago, this price is up +$4, or +1%.
Canadian Western Spruce-Pine-Fir producers described a persistent upward price trend developing in most of their wares, while buyers were beginning to get spooked by the palpable lack of wood available last week. Swathes of sawmills remained shut down or heavily curtailed, and those that were operational were “running for Asia”. Two-week or more order files at sawmills emerged as the market tightened up with so much production taken out. Sawmills had trouble keeping stock of 2×4 #3/Utility R/L on their sales lists as demand for that item was apparently really hot into Texas.
Spring breakup of ice on the mighty Fraser River in British Columbia was in full swing, halting most timber harvesting and log hauling operations for the time being.
Recovering some of the losses of recent weeks, last week’s Western S-P-F 2×4 price is down -$39, or -10%, relative to the 1-year rolling average price of US$375 mfbm and is down -$79, or -19% relative to the 2-year rolling average price of US$415 mfbm.
Eastern Canadian lumber and studs suppliers described a mixed market last week depending on the source, destination, and item. While pricing of #2 & Btr dimension lumber into the American Great Lakes market held firm for the most part, that of delivered prices into the Toronto market — aside from 2×4 which nudged up $5 to US$495 mfbm — crashed down.