Random Lengths undertaking open industry consultation, review of price guides

Random Lengths is inviting 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 the open consultation, we are proposing several specific changes to the Random Lengths price guide. In Canadian plywood, current delivered prices are derived from a base Toronto assessment. We are proposing adding a base Vancouver assessment that would drive prices for the four westernmost delivered markets of Vancouver, Calgary/Edmonton, Regina, and Winnipeg. The remaining delivered markets of Toronto, Montreal, Moncton, and Halifax would continue to be driven by a Toronto assessment. Initial industry feedback suggests that adding a new assessment for Vancouver would better reflect current market trends.

Random Lengths is also proposing several changes to the price guide related to the shakes and shingles market assessment group. Initial industry feedback favors a separate column specific to Canadian production of #1 5X and Perfections. Additional prices would be reported in U.S. dollars. In shakes, initial industry feedback suggests the addition of prices for 18-inch sawn shakes, reflecting current production trends. Further, we are proposing the elimination of the first footnote “TOFC shipments to Midwest and East,” as well as changing the wording in the second footnote from “Tapersawn” to “Sawn,” and adding the footnoted price at the bottom of the “Shakes” column.

The open consultation, for which we will take industry feedback through March 13, seeks to ensure that our methodologies continue to 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.

You can find the current methodology for Random Lengths and Random Lengths International here: Forest products methodologies.

As part of the open consultation, we are asking the industry specifically whether Random Lengths should change the Southern Pine #3 board price to a #3/4 mix. Industry feedback suggests that much of the low grade 1-inch sold in that market is made up of both a #3 and #4 grade.

We are also asking the industry if Random Lengths should eliminate its “moulding” column in the S2S moulding and shop market assessment group, in favor of reporting only moulding&Btr items. Market feedback suggests a decline in the number of producers in the former category.

Lastly, we continue to seek feedback on potential reporting changes to the western veneer market. We are specifically interested in feedback on the proposal to add dried veneer to the price guide, either as a standalone price or as an adder to green stock. In recent years, dried veneer has become a more important part of the market, with a corresponding number of requests to reflect that item in the price guide. Generally, because veneer has been a source of various complaints from the industry over the years, we are seeking feedback on how our reporting should be changed to improve our coverage of the sector.

For feedback on the above or any other issue, please send responses in writing, preferably in electronic format, to the following address: joe.pruski@fastmarkets.com. Please add the respective subject heading Random Lengths, 2023. The deadline for submitting comments is March 13. Also, please specify whether your response is confidential. Input offered in confidence may be referenced but will not be attributed in any way.

Random Lengths will publish the outcome of the methodology review by April 3, including a summary of the feedback, with the exception of those marked as confidential. Any proposals to make material changes, discontinue, or launch prices will involve a separate market consultation, the length of which will depend on how substantial changes may be.

Any changes to the Random Lengths Lumber price guide will take effect in the May 4 issue and the Panel Price Guide in the May 5 issue.

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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