Respondents to FEA’s Weekly Order Survey Reported Experiencing Limited Follow Through from Last Week’s Modest Uptick in Jobsite Sales Activity

Respondents to FEA’s Weekly Order Survey reported experiencing limited follow through from last week’s modest uptick in jobsite sales activity. Dealers in the southern tier of states reported greater activity than their counterparts in the north, which is typical for this time of the year. A decline in the National Association of Realtors Pending Homes Sales Index for September  2020, of -2.2%, was offset by year-over-year pending sales being up 20.5%. Another positive sign for building was that home prices were 5.7% higher year-over-year and availability of newly constructed and existing homes remains in tight supply. The first signs of a price correction in OSB since April, started in the Canadian production zones earlier this week and the remaining zones are already feeling the pressure. On the other hand, the price of Southern Pine plywood has stabilized and has already moved modestly higher. In the remaining lumber and panel markets the price correction remains intact. However, the high double and triple-digit price drops of the past several weeks have been replaced with smaller and less drastic price reductions and mills are not accepting large counteroffers, even if they come with volume. All signs that the markets are moving, albeit slowly, towards a new trading level. Transportation issues in selected areas continue to cause shipment delays.


FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.