Random Lengths has collected feedback from the industry on pricing methodologies for Random Lengths and Random Lengths International as part of its annual methodology review process.
In addition to an open consultation, we proposed back in February to add two Southern Pine MSR prices to the Lumber Price Guide, clarify a footnote in the shop and Mldg&Btr section of the lumber guide, and add a footnote to the Canadian plywood section of the Panel Price Guide.
We have decided based on industry feedback that we will not at this time add the Southern Pine MSR prices to the lumber guide. These prices would have reflected f.o.b. mill prices for 2400f 2x4 and 2x6 produced in the eastside zone. Industry feedback was mostly against or ambivalent toward reporting these prices, so we have decided to table the proposal.
We will, however, follow through on the other proposals. In the shop and Mldg&Btr section of the Lumber Market Report, we will clarify a footnote for Ponderosa Pine Moulding 1-5/16-inch (LCSD) and 1-9/16-inch (LCSE), indicating that reported prices for loadings of these items do not include 15-20% C&Btr. In the Panel Market Report, in the Canadian plywood section, we will add a footnoted adder for tongue-and-groove finishing for Spruce plywood (PASV), similar to the current footnote under the block of Canadian Douglas Fir plywood prices.
Price guide changes will take effect Thursday, May 6, 2021, for the Lumber Market Report, and Friday, May 7, 2021, for the Panel Market Report.
The open consultation allowed for industry feedback through March 15. This annual review seeks to ensure that our methodologies reflect the physical market, in compliance with the International Organization of Securities Commission (IOSCO) principles for price reporting agencies. This includes all elements of our pricing process, our price specifications, and publication frequency.
The feedback we received included one submission in favor of adding Southern Pine MSR and Dense Select Structural prices to the lumber guide. This was the only submission in favor of reporting MSR prices. Going forward, if the industry shows more support for reporting SYP MSR prices we will revisit the issue.
Another recommendation was to add specified prices for dry Douglas Fir #2&Btr 2x4-2x12 framing. We have received similar recommendations in the past, and if the industry shows more support going forward we will revisit this proposal.
Several subscribers expressed frustration that Random Lengths publication prices often lag the market, especially given the historic volatility of markets recently. This has been an issue for many decades in fast-rising or fast-falling markets. Prices published weekly in Random Lengths reflect our assessment of the market at the time of publication but cannot and should not take into account price movements thereafter which can change from day to day, and even hour to hour.
Also, some subscribers who recently have been unable to find supplies of lumber and structural panels in the volumes they need have reportedly been paying major premiums in the secondary market. In the absence of robust open-market trading at the mill level, this has led to suggestions that Random Lengths adjust its methodology to reflect pricing at the secondary level.
Adding secondary market transactions would represent a major change in methodology and would have a significant impact on existing assessment levels. Coverage of secondary market transactions would most likely require the launch of new assessments. We will continue to monitor this situation closely.
You can find the current methodology for Random Lengths and Random Lengths International here: http://www.rlpi.com/Methodology/
For comments and queries, please send email to: pricing.risi@fastmarkets.com.
For other Random Lengths Pricing Notices, please see:
http://www.rlpi.com/Pricing-Notices/
For more information on Random Lengths assessment methodology, please see:
http://www.rlpi.com/Methodology/
Detailed Item Code information following
A list of all item code changes (new and/or retired items) and changes in item descriptions
Note to database and spreadsheet subscribers
Random Lengths item code and description changes for May 2021
Price guide changes will take effect Thursday, May 6, 2021 for the Lumber Market Report, and Friday, May 7, 2021 for the Panel Market Report.
Database and spreadsheet subscribers will receive the following files transmitted directly to your subscription email address.
-- RL_Tags.xls, the revised Price Item Code Key (spreadsheet format) that contains label names in place of prices, in the same position they appear in the publication
-- RL_Tags.pdf, the revised Price Item Code Key (PDF format) that contains label names in place of prices, in the same position they appear in the publication
--Database Description Files. These cross-reference tables contain complete text and key-word descriptions for all price guide labels. Midweek items are referenced in the Lumber and Panel Description files.
-- The revised Lumber Description file Lbr_desc.csv
-- The revised Panel Description file Pnl_desc.csv
Panel - New items - FIRSTPUB Date: 05/07/2021
Files are also available to view and/or download at www.rlpi.com. Click on “HELP & FAQS,” then “Price Guide Revisions.” https://www.rlpi.com/Help/Price-Guide-Revisions
Database subscribers please note:
Support tables are available in Microsoft Access format on request. We’re making the support tables used to expand the field codes, including the query used to concatenate the Short, Medium and Long descriptions, available in Access format on request. Please contact Random Lengths Subscriber Services at subscriptions@rlpi.com, and we will send them to you.
LUMBER, FRAMING LUMBER
21 Item Code(s) - Description file change
Location changed from Western to Western Canada
LCBQ KD W S-P-F #2&Btr 2x4 random Mill Prices
LCBR KD W S-P-F #2&Btr 2x6 random Mill Prices
LCBS KD W S-P-F #2&Btr 2x8 random Mill Prices
LCBT KD W S-P-F #2&Btr 2x10 random Mill Prices
LCBU KD W S-P-F #2&Btr 2x12 random Mill Prices
LCBW KD W S-P-F #3 2x6 random Mill Prices
LCBX KD W S-P-F #3 2x8 random Mill Prices
LCBY KD W S-P-F #3 2x10 random Mill Prices
LCBZ KD W S-P-F #3 2x12 random Mill Prices
LCCA KD W S-P-F Stud 2x3 8’ PET Mill Prices
LCCB KD W S-P-F Stud 2x4 8’ PET Mill Prices
LCCC KD W S-P-F Stud 2x4 9’ PET Mill Prices
LCCD KD W S-P-F Stud 2x6 8’ PET Mill Prices
LCCE KD W S-P-F FJ Stud 2x4 8’ PET Prices Net f.o.b. Mill
LCLD KD W S-P-F #3/Utility 2x4 random Mill Prices
LCLE KD W S-P-F Stud 2x6 9’ PET Mill Prices
LCQO KD W S-P-F #2/#2&Btr 2x4 8’ PET Mill Prices
LCQQ KD W S-P-F #2/#2&Btr 2x4 9’ PET Mill Prices
LCRX KD W S-P-F #2/#2&Btr 2x6 8’ PET Mill Prices
LCRZ KD W S-P-F #2/#2&Btr 2x6 9’ PET Mill Prices
LCXS KD W S-P-F AG 2x4 8’ PET Mill Prices
LUMBER, FRAMING LUMBER, Specified Lengths
35 Item Code(s) - Description file change
Location changed from Western to Western Canada
LCCG KD W S-P-F #2&Btr 2x4 8’ Mill Prices
LCCH KD W S-P-F #2&Btr 2x6 8’ Mill Prices
LCCI KD W S-P-F #2&Btr 2x8 8’ Mill Prices
LCCJ KD W S-P-F #2&Btr 2x10 8’ Mill Prices
LCCK KD W S-P-F #2&Btr 2x12 8’ Mill Prices
LCCM KD W S-P-F #2&Btr 2x4 10’ Mill Prices
LCCN KD W S-P-F #2&Btr 2x6 10’ Mill Prices
LCCO KD W S-P-F #2&Btr 2x8 10’ Mill Prices
LCCP KD W S-P-F #2&Btr 2x10 10’ Mill Prices
LCCQ KD W S-P-F #2&Btr 2x12 10’ Mill Prices
LCCS KD W S-P-F #2&Btr 2x4 12’ Mill Prices
LCCT KD W S-P-F #2&Btr 2x6 12’ Mill Prices
LCCU KD W S-P-F #2&Btr 2x8 12’ Mill Prices
LCCV KD W S-P-F #2&Btr 2x10 12’ Mill Prices
LCCW KD W S-P-F #2&Btr 2x12 12’ Mill Prices
LCCY KD W S-P-F #2&Btr 2x4 14’ Mill Prices
LCCZ KD W S-P-F #2&Btr 2x6 14’ Mill Prices
LCDA KD W S-P-F #2&Btr 2x8 14’ Mill Prices
LCDB KD W S-P-F #2&Btr 2x10 14’ Mill Prices
LCDC KD W S-P-F #2&Btr 2x12 14’ Mill Prices
LCDE KD W S-P-F #2&Btr 2x4 16’ Mill Prices
LCDF KD W S-P-F #2&Btr 2x6 16’ Mill Prices
LCDG KD W S-P-F #2&Btr 2x8 16’ Mill Prices
LCDH KD W S-P-F #2&Btr 2x10 16’ Mill Prices
LCDI KD W S-P-F #2&Btr 2x12 16’ Mill Prices
LCDK KD W S-P-F #2&Btr 2x4 18’ Mill Prices
LCDL KD W S-P-F #2&Btr 2x6 18’ Mill Prices
LCDM KD W S-P-F #2&Btr 2x8 18’ Mill Prices
LCDN KD W S-P-F #2&Btr 2x10 18’ Mill Prices
LCDO KD W S-P-F #2&Btr 2x12 18’ Mill Prices
LCDQ KD W S-P-F #2&Btr 2x4 20’ Mill Prices
LCDR KD W S-P-F #2&Btr 2x6 20’ Mill Prices
LCDS KD W S-P-F #2&Btr 2x8 20’ Mill Prices
LCDT KD W S-P-F #2&Btr 2x10 20’ Mill Prices
LCDU KD W S-P-F #2&Btr 2x12 20’ Mill Prices
LUMBER, SELECTS & COMMONS
No change
LUMBER, INDUSTRIALS, SPECIALTIES, AND OTHER ITEMS
2 Item Code(s) - Description file change and Price Guide Footnote text change
Clarified that item “Does not include 15-20% C&Btr”
LCSD Inland KD Ponderosa Pine Shop Mldg 1-5/16” S2S Prices Net f.o.b. Mill
LCSE Inland KD Ponderosa Pine Shop Mldg 1-9/16” S2S Prices Net f.o.b. Mill
5 Item Code(s) - Description file change
Location changed from Western to Western Canada
LBXV KD W S-P-F Economy 2x4 random Prices Net f.o.b. Mill ($C)
LBXW KD W S-P-F Economy 2x6 random Prices Net f.o.b. Mill ($C)
LBXX KD W S-P-F Economy 2x8 random Prices Net f.o.b. Mill ($C)
LBXY KD W S-P-F Economy 2x10 random Prices Net f.o.b. Mill ($C)
LBXZ KD W S-P-F Economy 2x12 random Prices Net f.o.b. Mill ($C)
LUMBER Composites
3 Item Code(s) - Description file change
Location changed from Eastern to North America
LCHI Eastern S-P-F Composite
LCHT Eastern S-P-F Composite Prev Wk
LCIE Eastern S-P-F Composite Year Ago
PANEL, U.S. PANEL PRICES
No change
PANEL , CANADIAN PANEL PRICES
1 Item Code(s) ADDED
PASV Plywood Spruce Sheathing (W Canada) T&G Add ($C)
PANEL Composites
No change
MIDWEEK
10 Item Code(s) - Description file change
Location changed from Western to Western Canada
MAGQ KD W S-P-F #2&Btr 2x4 random Mill Prices
MAGR KD W S-P-F #2&Btr 2x6 random Mill Prices
MAGS KD W S-P-F #2&Btr 2x8 random Mill Prices
MAGT KD W S-P-F #2&Btr 2x10 random Mill Prices
MAGU KD W S-P-F #2&Btr 2x12 random Mill Prices
MAHW KD W S-P-F #3/Utility 2x4 random Mill Prices
MAGW KD W S-P-F Stud 2x4 8’ PET Mill Prices
MAIA KD W S-P-F #2/#2&Btr 2x4 8’ PET Mill Prices
MAHK KD W S-P-F Stud 2x4 9’ PET Mill Prices
MAIB KD W S-P-F #2/#2&Btr 2x4 9’ PET Mill Prices
INTERNATIONAL
No change
