Lumber Prices
#6941783
07/24/20 11:00 PM
07/24/20 11:00 PM
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Joined: Mar 2007
Posts: 35,168 McGrath, AK
white17
OP
"General (Mr.Sunshine) Washington"
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OP
"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,168
McGrath, AK
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I just received this from the supplier that I use;
Caution: If you want to start your weekend with a warm fuzzy feeling, don’t read the articles below this line. Not for the faint of heart.. Everything is up and out of control!
DELIVERED PRICES OSB Seattle Print change for this week.. 3/8" 7/16" 15/32" 19/32" T&G 23/32" T&G
+120 +120 + 120 +130 + 130
Western OSB: The thirst for OSB product in the West continues unabated despite approaching record high pricing. Order files currently extend into mid-September and beyond. Thin distribution offerings further exacerbate the supply line banishing any thought of just-in-time purchasing. Additionally, tight supplies of railcars decommissioned at the outset of Covid-19 have delayed shipments by two or three weeks. This has put a strain on truck supply as buyers turn to that mode in hopes of alleviating stock-outs. Demand remains strong in almost all Western markets and forecasts from our membership point to strong consumption through October. Don’t expect any of the factors cited above to improve in the coming months unless product shortages or extreme pricing puts jobsites on hold causing a decrease in demand.
Transportation:
Rail: Car supply across all networks is a major issue at the moment. Railroads put cars into storage at the beginning of the pandemic and have been slow to react as demand increased. On top of that, cars that go bad ordered along the route are taking extended periods of time in the shop due to crew shortages and necessary precautions due to COVID.
Just a reminder, if you are a railcar receiver, please read about adjustments to the CN’s carload tariff dealing with cable securement on LMC.net. This update pertains to receivers who are not directly served by the CN also.
Trucking:
Capacity continues to be tight across the board, expect extended lead times on shipments. Spot rates are certainly back to pre-pandemic levels, but I’d say generally speaking, similar to last year’s pricing around this time with exceptions on heavy traffic lanes. Specialty equipment like maxis in the PNW are tough to come by and back hauls out of the NE are nonexistent, so shipping trucks into that are command a higher rate.
Western Plywood:
Steady activity has continued in the West to start the week. Lead times pushed into week of 8/24 & 8/31. Car shipments to the Mid-Atlantic & New England continued due to extremely strong demand. Dealers in the East jumped on car offerings for late August fearing limited availability on the ground via distribution in September back east. Mid-week pushed numbers roughly $5-$7/m higher across the board and we expect similar on Friday. Continue to monitor needs accordingly, supply at all levels is limited. We recommend to continue to have orders in the pipeline. Look to begin covering your early September needs if you have not, we expect pricing to continue to push higher thru the month and hold in August.
Outlook:
September and October are traditionally very busy months for building activity. Due to near or above record high pricing – Dealers, Distributors, and Wholesalers, are all seeming to limit their positions/exposure. This should keep buyers steadily in the market over the next couple of months, keeping pricing levels propped up. In the West, fire season has not played too much of an external factor to date. In the South, there is some anxiety of a more active hurricane season. The big wild card that continues to be in play is Covid-19. Our recommendation continues to be monitor needs closely and look to cover some September needs at this point in both markets due to extended lead times and potential supply disruptions. It is very hard to predict right now when this market will actually peak due as this has been unlike any other year; however, we do not see weakness in pricing over the next 30 days and lead times should continue to extend further out.
Coastal KDDF and Hem Fir:
Another week of extremely tight supply led to another week of dramatic increases across the board. All dimension in both HF and KDDF were up between $17 and $25 compared to last week. All dimension hit yearly highs between this week. It was an active week and most customers were still shopping the same list they were turned down for the week before. 2x4 remains hard to find, similar to past weeks. Wides were not as accessible with 2x8 almost nonexistent and premium loads nowhere to be found. Lead times were still into August though we did see a handful of prompt loads pop up due to excess runs at the mill. Studs continue to be chased, with prices on all trims trending higher. 2x4 8’ rose $50 on DF while HF rose $45. 9’ trims seem to be following same upward trend rising between $40-45 on HF and DF. 2x6 DF saw an increase of $40 on 8’ trims and up $35 on 9’. HF 2x6 also on major increase runs up $30 on 8’ trims and up $45 on 9’s. Both species hit yearly highs outside on their stud pricing as well. Studs were into 2nd week of August with premium studs were still hardest to source.
Premium remains elusive and trucking is tight. With lead times out till end of August it would be safe to add another week or so to ship times, as we have been seeing a lot of late shipments. Expect delays in trucking and keep at least 30 days (if not more in some cases) ahead of inventory.
CASH RECAP:
The pace continues to chug right along as buyers waited too long find themselves shut out. Price continue to move higher in all markets. Most prompt wood is snatched up eagerly. There will be a day of reckoning for the buyer as he overextends but it looks like it is at least several weeks away.
Mean As Nails
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Re: Lumber Prices
[Re: white17]
#6941892
07/25/20 12:45 AM
07/25/20 12:45 AM
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Joined: Aug 2008
Posts: 16,240 ny
upstateNY
trapper
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trapper
Joined: Aug 2008
Posts: 16,240
ny
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Very little pressure treated ANYTHING available around here.Pretty bad.
the wheels of the gods turn very slowly
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Re: Lumber Prices
[Re: white17]
#6941977
07/25/20 07:08 AM
07/25/20 07:08 AM
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Joined: Dec 2006
Posts: 20,030 SEPA
Lugnut
trapper
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trapper
Joined: Dec 2006
Posts: 20,030
SEPA
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Prices are stable and availability good here in the east.
Except for treated, short supply on that but no price gouging that I've seen.
Eh...wot?
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Re: Lumber Prices
[Re: white17]
#6941980
07/25/20 07:12 AM
07/25/20 07:12 AM
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Joined: Dec 2006
Posts: 20,030 SEPA
Lugnut
trapper
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trapper
Joined: Dec 2006
Posts: 20,030
SEPA
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I just had a 42" black walnut picked up and sent to the mill. I'm having 9/4" sawn.
It cost me $100.00 to have a tri-axle pick it up (was already down and cut up) and $1,000.00 max to have it milled. Profit should be outstanding.
Eh...wot?
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Re: Lumber Prices
[Re: Hornady Reloader]
#6941993
07/25/20 07:30 AM
07/25/20 07:30 AM
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Joined: Dec 2006
Posts: 20,030 SEPA
Lugnut
trapper
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trapper
Joined: Dec 2006
Posts: 20,030
SEPA
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I needed to pick up some 2*4 the other day. $4.51 each for regular lumber. He said they can't even get treated. That's high!
Eh...wot?
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Re: Lumber Prices
[Re: white17]
#6942003
07/25/20 07:44 AM
07/25/20 07:44 AM
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Joined: Dec 2006
Posts: 20,030 SEPA
Lugnut
trapper
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trapper
Joined: Dec 2006
Posts: 20,030
SEPA
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The last time I bought treated I need a stack of 2 x 12 x 8 for deck steps. The lumber yard only had 2 x 12 x 10's. I do a lot of purchasing there and ask them if I could have them at the 2 x 12 x 8 price. They let me have them for the reduced price.
Eh...wot?
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Re: Lumber Prices
[Re: white17]
#6942005
07/25/20 07:45 AM
07/25/20 07:45 AM
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Joined: Dec 2011
Posts: 10,364 MT
snowy
trapper
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trapper
Joined: Dec 2011
Posts: 10,364
MT
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Interesting! I haven't had to buy any lumber lately, and if I did it was a few boards at the most.
I would say that has an impact on home sales and homes holding their value. Even in the times we are going through homes are selling very well in my area.
Give me a fish, I will eat for a day. Teach me to fish, I will eat for a lifetime
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Re: Lumber Prices
[Re: Lugnut]
#6942019
07/25/20 08:22 AM
07/25/20 08:22 AM
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Joined: Dec 2013
Posts: 14,861 Greene County,Virginia
run
trapper
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trapper
Joined: Dec 2013
Posts: 14,861
Greene County,Virginia
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The last time I bought treated I need a stack of 2 x 12 x 8 for deck steps. The lumber yard only had 2 x 12 x 10's. I do a lot of purchasing there and ask them if I could have them at the 2 x 12 x 8 price. They let me have them for the reduced price. Nice story. Lugnut.
wanna be goat farmer.
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