Lumber market overview prices shift amid shipping delays

Key takeaways:

• Framing lumber sales started slowly as buyers assessed shipping conditions before resuming replenishment, leading to modest price shifts.
• Western S-P-F mills cleared accumulations and lengthened order files, making discounts tougher for buyers to find.
• Southern pine producers reported that sales outpaced their ability to ship, causing sold lumber backlogs to accumulate.
• Inland and Coast market prices remained largely flat, with producers holding to recent quotes despite quiet trading activity.

Framing lumber sales were slow to get started after the long holiday weekend in the US is most markets. Many buyers paused early to assess market conditions – especially prospects for shipping any new orders – before resuming moderate replenishment as the week progressed.

Prices shifted modestly.

Recent trends in sales of western S-P-F were little changed. Discounts grew increasingly tougher for buyers to procure as order files lengthened and mills cleared existing accumulations. Overall list prices shifted mildly, and counters were often turned down.

Lumber futures were little changed week to date, with the front month trading near par with the cash market in most deliverable species. Total volumes remained low through Wednesday, but perked up on Thursday.

Southern pine mill sales outpaced producers’ ability to ship the loads, and backlogs of sold lumber continued to accumulate throughout the distribution pipeline. “I can sell it, I just can’t ship it,” one mill sales manager lamented, echoing a widespread industry sentiment. Prices shifted mildly with sales frequently reported on both sides of last week’s reported levels. Buyers replenished inventories readily but speculative purchases among secondaries were thin.

In the Inland market, prices were predominantly flat, or mildly higher in a few cases. Producers took the quieter pace in stride, while buyers hunted for discounts, which often ended up being a fruitless search. Upward momentum largely stalled out.

Post Memorial Day trading in the Coast market was largely quiet and uneventful. News that a potential labor strike had been averted eased some supply side concerns, but there was little immediate impact. Sales were modest and most mills held to recent quotes. Some softness appeared in spots, though discounts were spotty.

Near-term outlooks remained mixed with many continuing to describe the current market as “reactionary.” Much-needed rain in the Pacific Northwest was welcome after a dry winter, but concerns about a potential severe fire season lingered.

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