Softwood Lumber Market Thrown into Turmoil Following Strikes and Hurricane Helene

SEATTLE (Scrap Monster): Hurricane Helene’s aftermath in the South and the longshoremen strike affecting three dozen ports from Maine to Texas infused a measure of uncertainty and chaos into a previously mundane softwood lumber market.

Many traders in the South estimated that a clear picture of the hurricane’s impact was still a week or two away. By some estimates, more than a dozen Southern Pine mills on the eastside were still idle Thursday because of flooding or lack of electricity. Further, several other mills anticipated running out of logs by week’s end as heavy rains cut off access to forests in the hurricane’s path.

Asking levels for European Spruce jumped by double digits after dockworkers walked off the job on October 1. Sales of European imports were sparse, but the perception that supplies may tighten because of the strike supported a firmer tone in Western S-P-F in late trading. Sales remained confined to modest fill-in loads, but discounts dissipated and some mills captured premiums more frequently as the week progressed.

The Coast dry framing lumber market continued to march along steadily. Reports on both sales volumes and price movements were mixed. #2&Btr 2×6 remained in tight supply relative to demand as did 2×12, which continued its upward momentum.

Weakness was more apparent in green Fir, where 2&Btr 2×4 and 2×8 tumbled $25-30.

In the Inland region, ongoing strong upward movement in 2×12 in other species reignited a strong upward push for that width in the #2&Btr grade. Gains were as high as $30, far surpassing upward movement evident in other widths. Positive news failed to spill over to the stud market, as cracks evident last week spread to many trims.

While some spotty 1-inch board prices continued to edge higher due to both solid demand and fewer supplies, most adjustments were downward. Price cuts were deep in some instances, with reported prices not always able to capture the most aggressive discounts.

Courtesy: www.fastmarkets.com