A price index of lumber and panels used in actual construction for Feb. 5, 2010

*Western - regional species perimeter foundation; Southern - regional species slab construction.

Crow's Market Recap -- A condensed recap of the market conditions for the major North American softwood lumber and panel products as reported in Crow’s Weekly Market Report.

LUMBER : SPF prices jumped to levels not seen since June 2007, as buyers increased purchases late in the week. With mill order files extending through the month of February, buyers looked to cover potential needs for delivery in the latter half of March. A lack of wood fiber within the production system drove the Southern Pine lumber market for another week. Mill shutdowns were numerous because of the lack of logs, which constricted output and sent prices $15 to $30 higher. Coastal Species lumber demand was steady after a strong start to the week. Price increases of $10 to $20 were typical. Green Doug Fir prices climbed significantly, as a subtle shift in demand and low supplies boosted numbers. Some sticker shock is being reported from Inland Species mills with regard to their customers. Fir-Larch is slightly more available than Hem-Fir, but prices there are also very strong. Western Red Cedar mills reported garnering orders consisting of both carload and truckload volumes, many of them to be shipped in the month of March. One producer called the increase in demand “a slow awakening." Ponderosa Pine lumber remains very firm and selling at unchanged price levels. All grades of Shop are holding their levels, but #2&Btr is in no abundant supply. RadiataPine is at something of a disadvantage with regard to price. Radiata Shop can still compete favorably, on the basis of comparative return. Eastern White Pine Selects are still soft and variable in price, depending on the source. Premium is moving "acceptably" in all widths. Standard shows good strength in 1x12, but other widths are flat. Ponderosa Pine Selects are scarce and stable in price, but the market seems to care very little. It is the #3 and #4 Commons that are "driving the herd" in the words of another source. Retail trade is active, creating a pinch in all wide #2 Commons.

PANELS : After a slow beginning, Southern Pine plywood buyers came into the market to purchase significant volumes late. The result was higher rated sheathing prices, usually up $5 to $10. The sales pace in the Western Fir plywood market quickened Tuesday afternoon and progressed from there, placing upward pressure on prices. CDX prices rose $10 to $15 in most instances. Canadian softwood plywood producers have moved from the recent list of C$317 for 9.5mm CSP sheathing delivered to Toronto to selling levels scattered from C$323 to today's published number of C$336. OSB producers again controlled their production levels sufficiently to give prices a boost. The result has been price gains for all regions, from a few dollars to more than $15 in some cases. Prices among all southern producers of particleboard and MDF are very firm. Log shortages in both the West and the South have begun to create fiber problems.

Source: RISI's Crow's Weekly Market Report

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