Markets Pause to Digest
For the first time in months, prices on some Western SPF dimension items went down. Western S-P-F 2x4 #2 mill price declined by $12mbf and WSPF 2x4 9’ studs went down $3mbf. The sales pace at most mills slowed as buyers pulled back not knowing if this was the start of a something big or just a digestion period.
Sales of Southern pine dimension slowed last week as severe weather moved across the south hampering jobsites. Most 2x12 items remain high and hard to find.
OSB had another non-eventful week as mills held prices and wholesalers discounted prompt loads. Overall prices were flat in most regions.
Many feel that this will be a pivotal week for the market. If buyers can stay away, then prices will continue to slide and if they can’t, then we are in for more increases. Housing starts and new permit data for March will be released tomorrow. If that information is strong, then the run continues. We will see.