Because we collect volume associated with orders and shipments, we are able to see exactly how the market is moving.
Charlotte, NC (Vocus) March 8, 2010
The volume of both orders and shipments of southern yellow pine framing lumber fell dramatically for the week of March 4, according to Mill2Market, Forest2Market’s lumber price service. Ordered volume fell 38 percent below recent weekly averages and 16 percent below the previous week’s total. Shipment volume fell 28 percent below recent weekly averages and 17 percent below the previous week’s total.
Prices reflected the decrease in demand. Southern yellow pine framing lumber increased an average of just $3.87 per thousand board feet over the last two weeks. The average weekly price increase for the four weeks before that was $15.78 per thousand board feet. Since the last week of January, prices have increased a total of $58.31 per thousand board feet.
“If you compare volume and price data, you can see the exact time when the market began to cool,” says Daniel Stuber, who oversees data quality and analytics at Forest2Market. “Because we collect volume associated with orders and shipments, we are able to see exactly how the market is moving.”
“Buyers stepped into the market after the Christmas holiday, as demonstrated by the increase we saw in orders,” Stuber explains. “On the supply side, mills were unable to fill the orders, and prices jumped. The turnaround began during the last week of January, when orders fell though shipments continued to climb. Since that week, orders have deflated quickly and shipments have followed suit. Prices, though continuing their upward trend, have recently shown signs of weakening, an indication that we’re either at or near the peak.”
See chart comparing volume and price data at: http://www.forest2market.com/f2m/us/galleries/downloads/Press-Releases/Orders-Shipments-Framing.pdf
Companies in the wholesale lumber trade—both buyers and sellers—use Mill2Market to improve their net sales realizations. With volume weighted average prices, Mill2Market reports lead to better informed production and sales resource allocation decisions, the negotiation of fact-based contracts, and better leveraging of geographic and production efficiency advantages. In addition, Mill2Market provides mills with benchmarks for measuring company performance.
Headquartered in Charlotte, N.C., Forest2Market®, Inc. is the premier provider of market price information in the U.S. South and Pacific Northwest. Serving forestry, wood products, pulp and paper, lumber and bioenergy companies, Forest2Market offers a comprehensive product line to help its clients better understand their competitive position. Customers rely on Forest2Market, Inc. to provide the factual foundation they need to make operational and strategic decisions. Visit us at http://www.forest2market.com.
For more information, contact:
(704)540-1440 ext. 21
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