Lumber markets strengthened last week, after the government released housing starts and sales numbers that were surprisingly strong. At the same time, the BN and UP railroads both implemented a price increase of approximately 3%-4%. Early in the week, markets were fairly quiet and prices remained mostly unchanged. By the end of the week, however, mill order files increased and several items moved up. 2×4 #2 SPF prices moved up $5 per mbf, while 2×6 #2 SPF prices were flat. Higher quality 2×4 #2 White Fir and 2×4 #2 Douglas Fir prices also moved up $5, and mill offerings were limited. Stud prices moved up $5 to $10 per mbf across all species and trim lengths. 2×8 #2 and 2×10 #2 prices were unchanged. 2×12 #2 prices slipped another $5. Ironically, 2×12 #2 WF and 2×4 #2 WF in California are now trading at the same price. Low grade lumber prices also moved up on limited mill offerings.
Panel prices were a mixed bag last week, with some items moving higher, while others remained flat. OSB prices were strong, and prices on 4×8 7/16” moved up another $10 per msf. Over the last three months, prices for 4×8 7/16” have quietly moved up $35 per msf. When compared to historical highs, however, 4×8 7/16” OSB is still a relative bargain. The mills that we spoke with were firm at the new numbers, and their order files were stretched into the second week of February. SYP Plywood prices, however, were flat, and most items were available at the mills within 2 weeks.
Steel prices moved up yet again on another price increase from the domestic mills. We were notified of the price increase first by Arcelor, and within a day, CMC also sent notice. That is the second price increase that we have seen since early December. The mills are attributing the increases to higher global scrap steel prices. At this point, we do not see much downside in prices, and it is possible that we could see another increase in February.
