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Wood Market Trends
The 2″ lumber market was fairly uneventful this week, partly due to the holiday on Monday and also due to the wet weather that still plagues much of the country. Prices, for the most part remained relatively flat. The mills are trying to hold firm on prices and not taking counters unless they have excess of a certain size. On everything else they are getting print plus freight. While many mills are quoting as «prompt», trucking remains a bit of an issue. Prompt is apparently about 4 days out at best. The 1″ prices have remained firm and in some cases they are up slightly. 1 X 4 remains scarce as do some lengths in the wide boards. Secondaries who have 1 X 4 available are asking and getting higher than desired prices. Demand remains heavy. Timbers slipped a little bit again, which is good as they had gone up considerably when the market was rising.
There is several factors that may help push the plywood market up, in the state of Curitiba Brazil in the Southern region of Brazil it has been going thru torrential rainfall for the past 10 days. Logging is impossible with flooding of roads and the loss of some bridges, there has been more 4,000 persons that have been displace by the loss of their homes. Also the shipping lines that operate from the south of Brazil have cut back from 3 vessel a week to 2 thus creating a space shortage goods that have priority will most likely sail, and goods that are not on the priority list such as plywood and other lumber products are most likely be rolled over.
The shipping companies have implemented a GRI (general rate increase) of $215 per 40’hc which has gone into effect on June 1 2017. Thus creating a bottleneck at the Brazilian ports for goods competing for space availability. There should be a lack or shortages of plywood competing with the domestic mills thus creating a push upwards on pricing.
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