MAYFAIR MARKET UPDATE

LUMBER

The market firmed up to mill asking levels a week or so ago, which has taken away the dumping we saw in the Canadian market throughout June. Mills are creeping up prices as random print has taken small bumps week to week. There has been steady take away from the prairies market sub 800 2×4 and sub 600 2×6. This week we are just over those levels a little, but still selling. The major producers have order files into late June and running into August. There are quicker shipping loads from the local Alberta producers. Studs still seem to be a little tight out there, with #2 stamp being more in demand with limited supply. Wides have been tight as well, with most yards filling in from distribution on specified lengths. The market looks to be solid thru to mid-August.

PLYWOOD

Western mills have taken on a solid order file in the last 2 weeks, now quoting week of August 8^th. A heavy premium to print on the cash market (+15%) that has slowed the truck load inquiries. The over stocked distribution yards have now been able to get inventories back under control, however that did come at a cost. Now back in the black! I think we will be back to trading contract loads over the next 4-6 weeks as they will ship quicker.

OSB

Not my favorite! But has been much better trading over the past 10 days as the market has bottomed and crept up slowly. Lots sold in the low 500’s on thins and 925 ish on thicks. Now trading around 585 & 975, comfortable levels not a big run away. Some mills that do not normally support the Western Canadian market have been playing consistently and now have an order file into early August.

With the rising interest rates, yards are a little nervous on buying out to far, but business in the prairies is still very good with builders having long order files. We will probably not seen any impact from interest rates until the new year.