Framing lumber prices gained support from a growing perception that mills had largely aligned production with the lower demand level. This was most evident in the West, where one major announced downtime and other producers weighed cutbacks. Many Eastern Canadian prices rose on thin output, although traders braced for increased supplies as producers bring mills back up after summer shutdowns. While many buyers held to cautious purchasing strategies, some traders sensed that mills had seized control, at least in the near term.
Week Aug 8
Week Aug 1
Year Ago
2007
Random Lengths Framing
Lumber Composite Price*
$277
$273
$290
KD Western S-P-F #2&Btr 2x4 R/L
Mill Price
272
270
268
KD Eastern S-P-F #1&2 2x4 R/L,
delivered Great Lakes
360
350
345
Green Douglas Fir Std&Btr 2x4
R/L (Portland)
185
182
242
Southern Pine (Westside) #2 2x4 R/L
299
292
280
KD Coast Hem-Fir Std&Btr 2x4 R/L
245
245
262
Ponderosa Pine (Inland) #2&Btr
1x12 R/L
445
450
670
* Weighted
average of 15 key items
Structural panel sales were steady to brisk. Most OSB producers posted
a solid week of sales, with some reporting a midweek surge of activity.
Light field inventories put a premium on truckloads for quick delivery.
Southern Pine plywood sales were far from a runaway, but were active
enough to support modest price gains in most sheathing items. Western
Fir plywood mills often failed to match the sales rate of the past two
weeks as many customers digested recent orders.
