Pricing Notice: Random Lengths undertaking open industry consultation, review of price guides

Random Lengths is inviting feedback from the industry on pricing methodologies for Random Lengths and Random Lengths International as part of its annual methodology review process.

In addition to the open consultation, we are proposing one change to the Random Lengths International Price Guide. That is to change the description of Green Hemlock baby squares, c.&f. Japan, to kiln-dried stock. Industry feedback to date strongly emphasizes that little to no green stock is sold to Japan today; it is almost exclusively kiln-dried stock.

The open consultation, for which we will take industry feedback through March 14, seeks to ensure that our methodologies continue to reflect the physical market, in compliance with the International Organization of Securities Commission (IOSCO) principles for price reporting agencies. This includes all elements of our pricing process, our price specifications, and publication frequency.

You can find the current methodology for Random Lengths and Random Lengths International here: www.rlpi.com/Methodology

As part of the open consultation, we are asking the industry specifically whether Random Lengths should add pricing for Southern Pine MSR. We sought feed-back in last year’s consultation on whether to add Southern Pine MSR f.o.b. mill prices for 2400f 2×4 and 2×6 produced in the eastside zone. However, feedback from last year’s consultation was inconclusive and the decision was made to not move forward with these additions. Production of SYP MSR has increased, with both of the above items competing with MSR grades of other species in certain markets, including the Midwest.

We are also asking the western veneer industry to provide feedback on whether any changes should be implemented in Random Lengths’ reporting of this market sector. Because it has been a source of various complaints from the industry over the years, we are seeking feedback on how our reporting should be changed to improve our coverage of the sector.

For feedback on the above or any other issue, please send responses in writing, preferably in electronic format, to the following address: Shawn.Church@fastmarkets.com. Please add the respective subject heading Ran-dom Lengths, 2022, or Random Lengths International, 2022. The deadline for submitting comments is March 14. Also, please specify whether your response is confidential. Input offered in confidence may be referenced but will not be at-tributed in any way.

Random Lengths will publish the outcome of the methodology review by April 4, including a summary of the feedback, with the exception of those marked as con-fidential. Any proposals to make material changes, discontinue or launch prices will involve a separate market consultation, the length of which will depend on how substantial changes may be.

Any changes to the Random Lengths International Price Guide will take effect with the May 4 issue. Any changes to the Random Lengths Lumber Price Guide will take effect in the May 5 issue and the Panel Price Guide in the May 6 issue.

For other Random Lengths Coverage Notes please see:

www.rlpi.com/Coverage-Notes

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