North American lumber prices continued to move higher this week as mills extended order files, transportation delays reduced prompt availability and buyers returned to the market to replenish inventories. Price increases are no longer limited to Canadian SPF. Traders report firmer offers across Hem-Fir, Douglas Fir and Southern Yellow Pine, with several products posting gains of US$25-40\/mbf over the past week.<\/p>\n
The latest advance is not being driven by a sudden recovery in residential construction. Instead, traders say the market has become increasingly difficult to supply. Inventories throughout the distribution chain remain well below normal levels after months of cautious purchasing, while mills are shipping further into July and buyers are finding fewer opportunities to secure prompt volumes.<\/p>\n
\"Three weeks ago buyers still had leverage,\" one market contact told Global Wood Markets Info. \"Today, if you need lumber, you take what's available.\"<\/p>\n
SPF sets the pace<\/strong><\/p>\n The rally began in Western SPF but has quickly spread across other framing species.<\/p>\n Dry SPF prices have continued to strengthen as mills fill production schedules further into July. Hem-Fir has followed the same pattern, while green Douglas Fir has staged one of the strongest recoveries after trading at unusually low levels earlier this year. Several traders estimate that Douglas Fir has gained around US$40\/mbf from recent lows, bringing it back into line with competing western species.<\/p>\n Buyers say the biggest change is no longer the asking price but the delivery date. Material that was available for immediate shipment only weeks ago is now being quoted several weeks forward.<\/p>\n Southern Pine catches up<\/strong><\/p>\n Southern Yellow Pine is also moving higher after lagging much of the market during the spring.<\/p>\n Delivered prices have increased by roughly US$40\/mbf in recent days. Freight accounted for much of the initial increase, but mills have since started lifting offers as replacement volumes became harder to secure.<\/p>\n The Southern market remains particularly sensitive to trucking capacity. Most shipments move by truck, leaving buyers exposed to rising freight costs and limited equipment availability. While rail often offers lower transport costs, many customers cannot receive rail shipments, leaving trucking as the only practical option.<\/p>\n Transportation is now part of the price<\/strong><\/p>\n Freight has become one of the biggest variables in today's lumber market.<\/p>\n Railcar shortages, delayed allocations and longer transit times are slowing deliveries across several producing regions. Some traders report rail delays approaching three weeks, while truck rates continue to rise as equipment remains tight.<\/p>\n The result is simple: even where mills have production available, lumber is taking longer to reach customers. That has increased the value of prompt inventory and reduced buyers' willingness to wait for lower prices.<\/p>\n Buyers stop waiting<\/strong><\/p>\n Perhaps the biggest change is the behaviour of buyers.<\/p>\n For months many distributors delayed purchases, expecting softer prices later in the year. That strategy has become increasingly difficult to maintain as inventories declined and mills extended delivery schedules.<\/p>\n Several wholesalers say customers are now placing orders earlier and accepting higher prices rather than risking stock shortages. Negotiations over a few dollars per thousand board feet have largely disappeared. Securing delivery has become more important than squeezing the last discount out of a transaction.<\/p>\n Housing data no longer dictates the market<\/strong><\/p>\n Recent U.S. housing statistics have done little to change sentiment.<\/p>\n While headline housing starts weakened because of softer multifamily construction, traders note that single-family activity remains relatively stable. Current consumption is sufficient to absorb available production, particularly as several mills continue operating below historical output levels.<\/p>\n In the current environment, supply is having a greater influence on prices than housing headlines.<\/p>\n What comes next?<\/strong><\/p>\n Most traders expect prices to remain firm through the coming weeks, although opinions differ on how much further the rally can run.<\/p>\n Much will depend on whether mills are able to shorten order files and whether freight conditions improve before seasonal demand begins to slow later in the summer. Until then, buyers needing prompt shipments are likely to continue facing limited availability and higher replacement costs.<\/p>\n Selected benchmark prices (early July)<\/span><\/strong><\/p>\n North American lumber prices continued to move higher this week as mills extended order files, transportation delays reduced prompt availability and buyers returned to the market to replenish inventories. Price increases are no longer limited to Canadian SPF. Traders report … Continue reading \n\n
\n \nProduct<\/th>\n Price<\/th>\n <\/th>\n<\/tr>\n<\/thead>\n \n Eastern SPF KD Std&Btr 2x4<\/td>\n US$645\/mbf<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Southern Yellow Pine East Side KD #2&Btr 2x4<\/td>\n US$550\/mbf<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Douglas Fir Green Std&Btr 2x4<\/td>\n US$505\/mbf<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Western SPF KD #2&Btr 2x4<\/td>\n US$500\/mbf<\/strong><\/td>\n <\/td>\n<\/tr>\n \n Canadian Softwood Plywood 9.5 mm<\/td>\n <\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"