Inland standard and better 2x4 lumber is feeling pressure from two sides

In the midst of a challenging North American lumber market, 2x4 is seeing the biggest threats

Amid a sluggish trading pace in the Inland lumber market in recent weeks, 2x4 has often been singled out as the weakest width in dimension.

Within that, producers have noted Std&Btr (standard and better) wood as being the most difficult to sell. That has been reflected in part by the price gap to #2&Btr (and better) in both Fir&Larch (Douglas Fir and Western Larch) and White Fir/Hem-Fir. A gap that is normally around $10 has expanded to $25-30 lately.

#2&Btr 2x4 has been under downward pressure in recent weeks, with most mills offering discounts to clear lingering excess inventory. #2&Btr 2x4 usually overtakes 2x6 around this time of year, but that hasn’t been the case so far in 2023. In some species, 2x6 still holds a triple-digit premium to 2x4.

Given the drop in #2&Btr 2x4 prices, the ongoing premium to Std&Btr has highlighted the weakness of the latter. One producer noted that given the difference in quality between the grades, paying a little more for the better item is an easy choice for many buyers. “#2 is readily available right now, and the spread isn’t that bad, so it just makes sense to buy the #2,” another producer said. “If the spread gets closer or there’s less #2 available, then we will see more interest for Std&Btr.”

The price range between Std&Btr 2x4 and Utility 2x4 also has narrowed sharply. As recently as late December, Fir&Larch (Douglas Fir and Western Larch) Std&Btr 2x4 held a $295 premium over Utility 2x4.

In early March, the premium narrowed to $125 as lower grades have held relatively firm in recent weeks while upper grades have faltered significantly. The range is even tighter in White Fir/Hem-Fir, falling from $200 in late December to $110 in March.

Stay ahead of wood products market changes by joining your peers in subscribing to the Random Lengths weekly report. Speak to our team and find out more about our price products, forecasts and how Fastmarkets can help your business.

What to read next
(PIX Pulp & Paper Indices) - Following a consultation period, Fastmarkets has made a decision on its proposal to launch PIX containerboard price indices, covering the main grades testliner and fluting, in the Gulf Cooperation Council (GCC) countries on June 6.
Weak containerboard demand continues to impact the Mexican market
Industry leaders said low demand, high inflation and changing consumer spending are to blame as profit margins reach lowest point since 1Q 2012
Fastmarkets FOEX invited feedback from the industry in an open consultation process between April 26 and May 24, 2023, on the pricing methodology for its PIX Packaging Europe price indices. The consultation was done as part of our annual methodology review process.
Fastmarkets RISI is inviting feedback from the industry on the pricing methodologies for Global Pulp, as part of its announced annual methodology review process.
How could the FBB capacity expansions impact the European market?
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed