Pricing Notice: Random Lengths wrapping up open industry consultation, will move forward on a few changes to price guide

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

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