Random Lengths concludes industry consultation, seeks additional input on pair of items

Fastmarkets has collected feedback from the industry on pricing methodologies for Random Lengths and Random Lengths International as part of its annual methodology review.

In addition to the open consultation, we proposed several changes to various parts of the lumber and panel price guides. Industry feedback favored changes to ve-neer reporting, the addition of fingerjointed stud prices delivered Dallas, Texas, and a new assessment for European Spruce #2 2×4. Random Lengths will also continue to assess Fir&Larch and White Fir/Hem-Fir Std&Btr 2×4, but will revisit the decision should production levels of those items continue to fall.

The annual open consultation allowed for industry feedback from February 12 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.

Beginning with the lumber report on June 20, Random Lengths will publish assessed fingerjointed stud prices, delivered Dallas, Texas, for ES-LP, Fir&Larch, and Western S-P-F. Several respondents expressed support for the new delivered assessment. “Your suggestion of having a Texas delivered fingerjoint price would be an excellent improvement,” said one Canadian producer. “That is where the market is.”

Random Lengths will also make changes to the veneer report beginning on June 21, but will seek additional industry feedback until Friday, May 3, on the specific proposal. Random Lengths is proposing to eliminate all Douglas Fir 1/8-inch CD items and Douglas Fir AB-Grade. Respondents supported the discontinuation of those items, but favored keeping White Woods 1/6-inch CD in all widths. Random Lengths will publish its final decision for price guide changes to veneer on May 13.

Additionally, Random Lengths will move forward with a European Spruce #2 2×4 assessment, but is extending the feedback period to collect information on specifications for that item, including tally composition and whether to report prices on a delivered or FOB port basis. The period for feedback on that proposal is also extended until May 3, with a publication date for the new assessment to be announced later.

For feedback on the above, please send responses in writing, preferably in electronic format, to the following address: joe.pruski@fastmarkets.com. Please add the respective subject heading “Veneer,” or “European Spruce.” The deadline for submitting comments is May 3. Also, please specify whether your response is confidential. Input offered in confidence may be referenced but will not be attributed in any way.

A smattering of responses requested the addition or subtraction of various items across the Random Lengths lumber, panel, and international reports, but did not generate consistent enough response to warrant immediate changes. For 80 years, Random Lengths has remained responsive to industry feedback and is committed to adapting to changing industry needs. We welcome input on the composition of the report and our catalog of assessments, and will continue to seek feedback on specific proposals going forward.

For other Random Lengths pricing notices please see:
https://www.fastmarkets.com/price-notices

For more information on Random Lengths assessment methodology, please see:
http://www.fastmarkets.com/methodology/forest-products

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