Roller Coaster Continues - Market Update
Prices firmed up in Western SPF 2x4 last week as buyers stepped in to purchase their June needs. Also, reports circulated of an export order headed to China. Prices of Southern Pine dimension continued to drift downward with 2x12 leading the way. The Stud market remained mixed as some items found trading levels late in the week, while others were discounted to sell. The panel market was still in a correction mode as mills and wholesalers struggled to sell prompt loads.
In summary, the market remains overproduced. Demand remains strong across the country as the housing recovery continues. Producers were able to ramp up faster than many thought and China has slowed down their purchases on the open market. These are just a few of the factors contributing to the wild swings we have experienced. We were told to expect volatility and that’s exactly what we are experiencing.