In the volatile commodities market, the stability of US lumber prices is a breath of fresh air for timber industry stakeholders. When we examine the supply and demand dynamics that have resulted in this equilibrium, it is important to highlight that the market has remained resilient during a time when demand is normally declining. The most recent data tells a complex story of marginal increments and significant historical shifts.

In this blog, we’ll explore the current state of the US lumber market, reflecting on recent wood price trends that show the industry’s ability to adapt to challenging economic conditions.

A Look into the US Lumber Market Equilibrium

The market was expected to grow, but traders believed that stable prices and a balanced supply showed the market was still active, even though the double holiday period seemed to minimise demand levels.

For the week ending on May 24, Western S-P-F 2×4 #2&Btr KD (RL) was US$384 mfbm, marking a $1 or approximately 0.26% increase from the previous week’s US$383 mfbm. However, this figure is $46 or 11% lower than the price a month ago, when it stood at US$430 mfbm.

In a year-over-year comparison, the price has seen an uptick of $34 or 10%, from US$350 mfbm during the same week. Looking back two years, there’s a significant drop of $517, or 57% from the price of US$901 mfbm.

Similarly, the price for Southern Yellow Pine East Side 2×4 #2&Btr KD (RL) for the week ending May 24 was US$365 mfbm. This represents an increase of $10 or 3% from the US$355 mfbm recorded in its preceding week.

For the week in question, the price experienced an increase of $8 or 2% from the previous month’s figure of $358 mfbm.

Comparatively, the price was $105 or 22% lower than during the same week of the previous year, when it stood at $470 mfbm. Furthermore, there was a substantial decrease of $430 or 54% compared to the price two years ago, which was $795 mfbm.

In the recent assessment of the US lumber market, key observations include buyers initially resisting firm asking prices, eventually agreeing to fulfill their requirements within a four- to six-week period. With a balanced supply-to-demand ratio and reasonable sawmill delivery schedules, prices remain within an acceptable range.

Another interesting point to note here is that, coastal lumber prices have stabilized, indicating that a stabilisation phase is underway. Suppliers have reported minimal field inventories, suggesting that the market is currently in a state of being underbought.

Conclusion

The US lumber market has demonstrated a remarkable balance in the face of fluctuating economic conditions. The steadiness of US lumber prices reflects a well-matched supply-and-demand scenario. As the timber industry navigates through the remainder of the year, the market’s resilience is evident in the maintenance of price levels, suggesting underlying growth potential. The lumber market’s future health and prosperity will largely depend on its capacity to maintain this equilibrium.

To know more about the latest updates, you should keep up with the latest global timber market news. Market Data Hub is a digital and comprehensive global timber market tracker that provides more than just data, it also offers news, webinars, and insights. From one dashboard and with 150+ market indicators, you can monitor logging, production, inventory, export/import, consumption, and prices in 25+ key markets worldwide.

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