Current Market Update

          Little was heard regarding demand for lumber from disaster-stricken Japan. But offshore sales in total continued to offset sluggish domestic demand for producers in Western Canada and the West. Even so, some key prices softened. Canadian mills continued to struggle with supplies of cars, some of which remained buried in snow drifts in the Interior. Elevated prices and limited availability of logs led a few western producers to quietly reduce output.

          Supply shortages and exports remained the main drivers in western board markets. Weak domestic demand lingered. News that one supplier was expected to resume production next month, and speculation that others may follow, contributed to growing reluctance among distributers to replenish thin inventories. Upward price pressure on #2&Btr and #3 1x12 eased. Mills garnered premiums on low grade sales to Mexico and overseas. Demand in Mexico was especially strong. Meager ES-LP offerings sold readily. Discounts surfaced in #2&Btr 1x6. Demand was solid offshore, but lukewarm in the U.S. European Spruce #2 was thinly traded in narrow price ranges.

                  Random Lengths, March 25, 2011