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 2×4 and 2×6 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 2×4-2×12 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 2×4 random Mill Prices
LCBR KD W S-P-F #2&Btr 2×6 random Mill Prices
LCBS KD W S-P-F #2&Btr 2×8 random Mill Prices
LCBT KD W S-P-F #2&Btr 2×10 random Mill Prices
LCBU KD W S-P-F #2&Btr 2×12 random Mill Prices
LCBW KD W S-P-F #3 2×6 random Mill Prices
LCBX KD W S-P-F #3 2×8 random Mill Prices
LCBY KD W S-P-F #3 2×10 random Mill Prices
LCBZ KD W S-P-F #3 2×12 random Mill Prices
LCCA KD W S-P-F Stud 2×3 8’ PET Mill Prices
LCCB KD W S-P-F Stud 2×4 8’ PET Mill Prices
LCCC KD W S-P-F Stud 2×4 9’ PET Mill Prices
LCCD KD W S-P-F Stud 2×6 8’ PET Mill Prices
LCCE KD W S-P-F FJ Stud 2×4 8’ PET Prices Net f.o.b. Mill
LCLD KD W S-P-F #3/Utility 2×4 random Mill Prices
LCLE KD W S-P-F Stud 2×6 9’ PET Mill Prices
LCQO KD W S-P-F #2/#2&Btr 2×4 8’ PET Mill Prices
LCQQ KD W S-P-F #2/#2&Btr 2×4 9’ PET Mill Prices
LCRX KD W S-P-F #2/#2&Btr 2×6 8’ PET Mill Prices
LCRZ KD W S-P-F #2/#2&Btr 2×6 9’ PET Mill Prices
LCXS KD W S-P-F AG 2×4 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 2×4 8’ Mill Prices
LCCH KD W S-P-F #2&Btr 2×6 8’ Mill Prices
LCCI KD W S-P-F #2&Btr 2×8 8’ Mill Prices
LCCJ KD W S-P-F #2&Btr 2×10 8’ Mill Prices
LCCK KD W S-P-F #2&Btr 2×12 8’ Mill Prices
LCCM KD W S-P-F #2&Btr 2×4 10’ Mill Prices
LCCN KD W S-P-F #2&Btr 2×6 10’ Mill Prices
LCCO KD W S-P-F #2&Btr 2×8 10’ Mill Prices
LCCP KD W S-P-F #2&Btr 2×10 10’ Mill Prices
LCCQ KD W S-P-F #2&Btr 2×12 10’ Mill Prices
LCCS KD W S-P-F #2&Btr 2×4 12’ Mill Prices
LCCT KD W S-P-F #2&Btr 2×6 12’ Mill Prices
LCCU KD W S-P-F #2&Btr 2×8 12’ Mill Prices
LCCV KD W S-P-F #2&Btr 2×10 12’ Mill Prices
LCCW KD W S-P-F #2&Btr 2×12 12’ Mill Prices
LCCY KD W S-P-F #2&Btr 2×4 14’ Mill Prices
LCCZ KD W S-P-F #2&Btr 2×6 14’ Mill Prices
LCDA KD W S-P-F #2&Btr 2×8 14’ Mill Prices
LCDB KD W S-P-F #2&Btr 2×10 14’ Mill Prices
LCDC KD W S-P-F #2&Btr 2×12 14’ Mill Prices
LCDE KD W S-P-F #2&Btr 2×4 16’ Mill Prices
LCDF KD W S-P-F #2&Btr 2×6 16’ Mill Prices
LCDG KD W S-P-F #2&Btr 2×8 16’ Mill Prices
LCDH KD W S-P-F #2&Btr 2×10 16’ Mill Prices
LCDI KD W S-P-F #2&Btr 2×12 16’ Mill Prices
LCDK KD W S-P-F #2&Btr 2×4 18’ Mill Prices
LCDL KD W S-P-F #2&Btr 2×6 18’ Mill Prices
LCDM KD W S-P-F #2&Btr 2×8 18’ Mill Prices
LCDN KD W S-P-F #2&Btr 2×10 18’ Mill Prices
LCDO KD W S-P-F #2&Btr 2×12 18’ Mill Prices
LCDQ KD W S-P-F #2&Btr 2×4 20’ Mill Prices
LCDR KD W S-P-F #2&Btr 2×6 20’ Mill Prices
LCDS KD W S-P-F #2&Btr 2×8 20’ Mill Prices
LCDT KD W S-P-F #2&Btr 2×10 20’ Mill Prices
LCDU KD W S-P-F #2&Btr 2×12 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 2×4 random Prices Net f.o.b. Mill ($C)
LBXW KD W S-P-F Economy 2×6 random Prices Net f.o.b. Mill ($C)
LBXX KD W S-P-F Economy 2×8 random Prices Net f.o.b. Mill ($C)
LBXY KD W S-P-F Economy 2×10 random Prices Net f.o.b. Mill ($C)
LBXZ KD W S-P-F Economy 2×12 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 2×4 random Mill Prices
MAGR KD W S-P-F #2&Btr 2×6 random Mill Prices
MAGS KD W S-P-F #2&Btr 2×8 random Mill Prices
MAGT KD W S-P-F #2&Btr 2×10 random Mill Prices
MAGU KD W S-P-F #2&Btr 2×12 random Mill Prices
MAHW KD W S-P-F #3/Utility 2×4 random Mill Prices
MAGW KD W S-P-F Stud 2×4 8’ PET Mill Prices
MAIA KD W S-P-F #2/#2&Btr 2×4 8’ PET Mill Prices
MAHK KD W S-P-F Stud 2×4 9’ PET Mill Prices
MAIB KD W S-P-F #2/#2&Btr 2×4 9’ PET Mill Prices
INTERNATIONAL
No change
