VANCOUVER, Dec. 19, 2019 /CNW/ -
Housing starts in the US grew +3.2% in November to a seasonally adjusted annual rate of 1.365 million and the pace for October was revised upward, according to the Department of Housing and Urban Development and the Department of Commerce December 17.
December 17, 2019 "The price of benchmark lumber commodity Western Spruce-Pine-Fir KD 2x4 #2&Btr last week was unchanged from the week before, still at US$394 mfbm (net FOB sawmill; cash price, or "print"). This price is -$2 less than it was one month ago.
Compared to one year ago, this price is up +$60, or +18%. Compared to historical trend, last week's WSPF 2x4 #2&Btr price continued rising, up by another +$25, or +7%, relative to the 1-year rolling average price of US$369 mfbm, and is down -$43, or -10%, relative to the 2-year rolling average price of US$438 mfbm.
Last week's price is up +$20, or +5% relative to the 5-year rolling average price of US$374 mfbm."
— Madison's Lumber Reporter www.madisonsreport.com
At this moment, Canadian and US sawmills are reporting they are holding off booking new sales until January, just to maintain current price levels. If the customer tries to counter-offer at a lower price, they are quoted for January delivery. In the west, sales of WSPF lumber and studs in the US took another small step back last week as the majority of buyers had their immediate needs covered and purchased minimal volumes only.
For their part, similarly, reloads, wholesalers, and secondary suppliers have also not been building lumber inventory. Players remain cautious, especially given the massive amount of sawmill closures over this year. Sentiment among customers that prices might go down stubbornly persists.
US house prices rose in 3Q 2019, up +1.1 per cent according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI), released November 26. House prices in the US rose +4.9 per cent from 3Q 2018 to 3Q 2019. FHFA's seasonally adjusted monthly index for September was up +0.6 per cent from August.
US house price appreciation inched up slightly in September with year-ago growth in the 20-city composite index rising to 2.1%, up from 2% in August, said the latest Case Shiller indices from Moody's Analytics.
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SOURCE Madison's Lumber Reporter
For further information: Keta Kosman, Publisher, Madison's Lumber Reporter, est. 1952, Vancouver, BC, Canada, www.madisonsreport.com, 604 319-2266