Market Overview*

June 21, 2013

Dry Western Domestic Species Western prices continue to bleed as Mills struggle to move inventory. "Random" pricing reflected this ongoing trend with all Western species (except California White Fir) seeing more drops in levels. Stateside Doug Fir and Fir-Larch Mills are seeing the Canadian Mills offer large quantities of Dry Fir at Low asking levels. Stud numbers all saw another double digit drop in Print also. Some more Mills have announced downtime until this market turns. As it goes watch for more mills to start some cutbacks or shutdowns to limit production.

Green Doug Fir We've finally gotten to the point where a few mills have decided that enough is enough. Seneca's Noti mill was down this past week and we saw both Swanson and Banks come in with upcoming shutdowns that are "indefinite" in duration. Mills were able to clean up a lot of their quick shipping material and were finally able to remain firm on their price quotes. Pricing still finished the week lower than where it begin but it appears the market has firmed.

SPF This week continues to have no follow-through. Everyone is very skeptical of the market as they continue to see print drop double digits on studs and single digits on dimension. If you have immediate needs distributors are doing what they have to, to keep their inventory turning. Mills have odd ball tallies for prompt, but are a solid 2 week lead time on a random. Please keep a close eye on inventory. July Futures contract closed Wednesday up $0.70.

OSB Printed levels at mid-week showed drops of five to ten dollars depending on the zone and the item. Expect to see additional drops of similar amounts today. Mills are struggling to sell excess production, as most of their customers are adequately supplied with weekly contract allocations. Dealer business has been better in certain areas, but not enough to absorb the newer production entering the market. Discounts are still available in many areas. LP pulled off the market at all of their mills late this week as they evaluate their production relative to current demand.

Western Plywood Limited demand is keeping downward pressure on the market. Prices are off $10 to $25 again this week as buyers continue to limit purchases to immediate needs. Competition from distribution trucks continues to limit carload sales to the east coast. Announced Fourth of July shutdowns are having limited impact on the overall market. The decline in production will have an effect on overall availability, so be alert. *Source: LMC Market Watch