Price weakness, confined primarily to Southern Pine in recent weeks, spread across a broader portion of North American framing lumber species. A growing number of buyers in Canada and the South searched for bargains and displayed little urgency amid a seasonal fade in demand.
The Random Lengths Framing Lumber Composite Price, which began the fourth quarter with eight consecutive weekly increases, fell for the second week in a row and lost $6. Wintry weather slowed consumption in northern-tier regions, contributing to the slower pace.
Western S-P-F sales slowed. Buyers digested recent purchases and many perceived an opportunity to pounce on at least modest bargains with supply tightness easing. In the South, downward price pressure persisted. Mills noted a measured increase in liquidity, but lamented suffering deepening financial losses at current price levels.
Colder temperatures slowed consumption, and year-end inventory taxes created incentive for buyers in some states to throttle back purchases. The unusually wide price spread between SYP and Western S-P-F was once again a frequent topic of conversation, but species substitution remained limited.
In Coast species, mills expressed confidence in next year’s outlook given the better-than-expected fourth-quarter run. Several mill representatives commented that they felt like they were “in the driver’s seat” as they wrapped up 2024.
In the Inland market, #2&Btr 2×6 posted modest gains across species, while wides were strongest in Fir&Larch. 2×12, which had posted some of the strongest gains for months, was flat in White Fir/ Hem-Fir. Sales of studs were lackluster.
Light industrial lumber trading kept downward pressure on some prices, as mills sold upper grades of shop and Mldg&Btr most aggressively.
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