World News – CA – As Demand Raises Softwood Prices Raising – Wood Business

It’s incredible for this time of year and if someone had predicted it a month ago they would have met mocking laughs, but on wood prices actually went up last week as demand increased. This is absolutely unprecedented for the week before U.. S.. . Thanksgiving and sawmills just don’t have enough wood in their yards to sell to starving customers.

As a major timber merchant said earlier this week, “Customers who were unwilling to book orders at these new higher prices when they called back that timber had already been sold. “Softwood the size of a construction frame sells like it did in April when the U. . S.. . The house construction season begins, not the end of November, when construction, and with it forestry, is normally closed for the year. Both the Case-Shiller Property Price Index and the Federal Housing Finance Agency’s property price index were released on Tuesday, showing a year-over-year increase of 7% and 7% respectively. 8% up.

People who manufacture and sell wood don’t actually know what to think of this remarkable situation, but one thing is for sure: 2021 will be a hot banana for U. . S.. . Housing construction and therefore for wood sales and prices.

“As another round of COVID-19 lockdowns emerged, the demand for wood remained unusually high. ”- Madison’s Wood Reporter

Western S-P-F suppliers in the US had another solid week of sales. The sawmills extended their order files for bread and butter until the end of November. Prices of certain commodities rose and started while most remained unchanged. However, the strong tone of demand was undeniable. Demand for 2 × 4 and 2 × 6-9 was again hottest as multi-family projects continued to generate strong demand for this equipment. Even as # 4 / Economy sales lagged the rest of the dimensional items, the instant availability of even this weaker category dried up with the rapidity as demand continued to grow.

According to producers, sales of Western S-P-F in Canada have been developing at a steady pace since last Wednesday. Three to four week sawmill order files were created with ease for the most traded goods, while some low quality items had instant availability. The players didn’t expect this to last, especially as many manufacturers were apparently in the process of shifting their focus from low quality to heavy export programs with Asian countries over the winter. Lower quality offers were also cleaned up by Canadian buyers who wanted to take advantage of the “Canadian discount” before expecting a change in the coniferous tariff rate anytime soon.

To everyone’s amazement for the week leading up to November. 20, 2020 the price for the reference item for softwood Western S-P-F KD 2 × 4 # 2&Btr continued to rise, increasing by a further 6 USD or 1% to U compared to the previous week. . S.. . $ 596 mfbm. Last week’s price is -104 USD or -15% less than a month ago. Compared to a year ago, that price is up $ 200, or 51%.

« Eastern S-P-F sales were robust last week as underserved buyers frequently came in to support their persistently low inventory levels. Sawmill prices continued to rise, and 9-foot tunnels grew significantly in importance in the Great Lakes market. Material availability has been a persistent problem as both primary and secondary suppliers have been unable to keep pace with continued demand. The order files for the sawmill have been created and most of the items were shipped in the week of March 30. Booked November. ”- Madison’s Wood Reporter

Compared to the one-year moving average price of U. . S.. . $ 538 mfbm, last week Western S-P-F KD 2 × 4 # 2&Btr sold for $ 58, or 11%, up $ 143, or 32%, compared to U’s two-year moving average price. . S.. . $ 453 mfbm.

The following table compares the most recent highs in June 2018 and current November. 2020 benchmark dimension softwood sawn timber 2 × 4 prices compared to historical highs of 2004/05 and compared to recent lows of Sept.. . 2015:

FPAC welcomes the step taken by the federal government towards net zero emissions by 2050: https: // www. Lumber shop. ca / fpac-applauds-federal-governments-move-in-net-zero-emissions-by 2050 / @FPAC_APFC @DerekNighbor #netzero #forestry #sustainability

Read the latest attachments available for clearing biomass in Canadian forests in the latest article on tool brushes: https: // www. Lumber shop. ca / equipment-headlights-brush cutting-attachments / # brush cutting # forestry # harvest

CFI recently got an inside look at Killaloe, Ont. Ben Hokum & Son Ltd. . improved optimization. The family-owned sawmill relies heavily on optimization: https: // woodbusiness. ca / dynamic-operations-ben-hokum-son-betting-big-on-optimization / #sawmill #optimization #lumber

Demand, Sawn Timber, Softwood, Construction