FROM THIS WEEK'S MADISON'S REPORTER

A brief selection of Madison's weekly market comments.
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WSPF Contradictory

While WSPF sales have not been as hot as the weather, they have actually surpassed analysts’ expectations for the summer. Most sources had predicted a gradual drift downward in values that would go to a sub $200 level by Labour Day. That gloomy prediction has not yet panned out and, with sales this week at a slow but steady summer rate, prices apparently will not go under the magic limbo stick before the end of summer holiday weekend. Traders noted that volumes were okay. Business is even expected to pick up in September. Order files went out approximately ten days at most mills. There were no significant obstacles to transportation.

Key #2&Btr 2x4 dimension lumber prices graph chart

Studs Go to China

Central British Columbia breathed a sigh of relief as a few days of rain without lightning cleared the smoke and dampened fires throughout the region. Studs makers report that, in spite of not having been able to access the forests due to fire danger over the last couple of months, they have plenty of logs in their mill decks.

Companies anticipate a reduction in stumpage costs that they hope will give them some relief in the fall quarter. Export business went “gangbusters” according to studs traders. China, formerly only willing to buy bottom-of-the-barrel grades, has begun to appreciate the benefit of less wastage with buying higher grade products. Premium studs producers have observed China morphing into a better market where the junk studs are no longer desired. One producer reported that company had sold more into China over the last three weeks than it had in the previous three years. “It’s excellent to have a legitimate secondary market to the US,” noted a trader. At least one major maker has plans to refit an entire mill to run metric sizing to serve the China market.

WSPF KD 2x4 PET dimension lumber prices graph chart