Re: Siskiyou Line Update
Author: almo
Date: 09-25-2008 - 23:13
Hope it lasts. Hate to see any more mills close or suspend operations because it will drive the costs higher. Being in the lumber trade, I've seen the prices falling quite a bit in Canada. I assume the same is happening in the States, as new construction (mostly SFD - single family developments) is slowed right down.
There was a plywood plant in Prince George, BC that burned down a few months back, and is not planned to be rebuilt. The initial effect on plywood prices was inflated in the first week after, but the market corrected itself about twenty days after the fire. It was a major supplier to the PNW lumber distributors.
The latest news on the plywood front is that there is a surplus at the mills, and demand for fir ply vs. spruce is better. I even have distributors buying other distro's product from me, as the quality of the fir is real decent and in high demand, especially T&G (for subfloors). The export business is down, so that adds to the surplus here, keeping it plentiful - and cheap! Prices for lumber has dropped for about two months, about a 15-20% decrease. OSB is up about 25%, and being cheaper than ply, is the hotter seller with builders trying to make money in a tight real estate market. Land value is the driving force of that because it chews away the builder's profit when land values drop. Only way to turn a buck right now is in the MFD (multi-family developments)- the density is the key.
almo