MARKET WATCH Industry Insights for the Week of Oct. 12, 2020

Industry insights for the week of Every week, Alexander Lumber produces reports on the lumber industry as a courtesy to its customers. We trust you’ll find it helpful for building your business. Oct. 12, 2020

MARKET WATCH By Chris Straka, Purchasing Manager – Commodities

The market printed down quite a bit harder in lumber this past week, as the rapid purchasing pace has paused for now. Prompt wood is still not available for the most part, and it led to most dealers standing on the sideline in regard to car purchases. Most purchasing this past week came from the minimal supply out of distribution. Dealers continue to wait on material to arrive from purchases made weeks and weeks ago. The panels market was a mixed bag, with OSB and Fir printing flat, while SYP plywood continues to drop.

SPF: Price Trend – Down SPF had some larger printed price drops as well, especially in 2x6. Producers are still trying to catch up with order files and delayed transportation. A few mills have been attempting to sub SPF with Douglas fir to get loads moving. A lack of mill inquiries due to the late shipments, long order files, and a lack of home centers buying material are the main drivers for the downward trend here. Everyone is still waiting on cars and trucks from orders placed up to 3 months ago.

Southern Pine Lumber: Price Trend – Down

Sales from mills came to a standstill, as buyers have been keeping an eye on the downward trend. Many Southern mills have caught back up with production levels and were looking to move loads.

OSB: Price Trend – Flat OSB was flat all around. Extended mill order files and lead times have allowed this category to remain strong. Flat pricing will continue if mill order files and lead times continue the way they have been.

SYP Plywood: Price Trend – Down

Western Plywood: Price Trend – Flat SYP plywood saw significant pricing drops in CDX due to downside risk in the market. UL and sanded pine was mostly flat. Continued storm forecasts could help slow this a bit in the coming weeks.

Fir plywood was flat, as mills continue to work off of extended lead times and order files. Mills have started to look at small counter offers but are not willing to “cheapen the market” by listening to low-ball counters.