Happy Monday everyone and welcome back to the Monday Market Report! The winds of change are upon us for sure, but for how long and to what extent we cannot be certain. The major volume buyers of #2&better lumber have significantly curtailed recent orders causing a downward shift in prices for upper grades in almost every dimension and region. 2×4 and 2×6 have been the most heavily impacted. Boards remain strong as well as longer timbers, but some downward pressure is showing in the shorts. Industrial grades are still holding for now as the mill capex improvements over the last year have limited the production of downfall products. For the end users out there, the good news is that some relief or at least abatement is coming. Everything is relative though considering lumber is still trading at double what previous historic highs were prior to 2021.
Panels are a different story, but some indicators are showing that we may be reaching the top of this climb soon. Pricing has continued to rise week over week, but the increases have not been as severe in recent weeks. In the gulf coast region, that could change very quickly depending on how the hurricane season progresses.
We have not talked much about hardwood on this report, but it is worth mentioning that hardwood log supply has been limited and especially challenged with the heavy rains seen in the Southern US in recent weeks. Mills are unable to keep up with demand and have increased prices to account for the rise in their input costs. We maintain an inventory and have remanufacturing capability to get customers their desired dimensions and lengths with relatively short lead times. Ask one of or teammates if you would like to know more.
Please feel free to reach out to me with any specific questions or feedback on the Report or anything else in the wild world of lumber. The entire Lodge Lumber team is dedicated to being a valued partner to our customers, vendors, and to our community. We look forward to talking with you all soon!
Andrew Harris – Sales Manager
For quotes and orders, email firstname.lastname@example.org, call 713-672-6679 or fill out our contact form.