Wednesday, April 8, 2020

Market Uncertainty Impacting Softwood Lumber & EWP

Originally published by the following source: SBC Magazine — April 8, 2020 by Sean Shields

COVID-19 is having an appreciable impact on the softwood lumber and engineered wood products industries, with Random Lengths reporting trading slowing dramatically and producers across North America cutting back production as a result.

Softwood Lumber
Random Lengths published the table at right on March 27, observing that speculative buying had died off , prompting many producers to curtail or shut down mills.

In its April 3 update, Random Lengths observed that after its Framing Lumber Composite Price reached its highest level in 18 months at the start of March, there has been four weeks of significant declines.

Random Lengths notes that the steady stream of mill curtailments are having little impact on the downward movement in the market. Of particular note is this observation: “Most traders expect significantly more production cutbacks to be announced in the coming weeks, but are unsure of the impact it will have.”

In an April 6 press release, Boise Cascade, one of the largest producers of engineered wood products and plywood in North America, announced it will reduce plywood production by 25-35 percent and engineered wood by 20-40 percent depending on location, and in comparison to first quarter levels. The reductions are expected to be implemented through a combination of periodic curtailments and reductions in operating schedules at specific facilities.

CLICK HERE to read the entire SBC Magazine article

No comments: