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Southern Pine dimension mills have attempted to keep supplies more in line with sluggish lumber demand in recent months, but perceptions remain mixed whether it has ultimately been effective in tempering downward price pressure.
Several mills reportedly curtailed production through the summer months without making public announcements to indicate cutbacks. Most of the measures were modest, often limited in scope to simply reducing shifts, according to sources.
Temporary shutdowns are much less disruptive now at mills with newer technology, which allows for smoother transition from going idle to ramping up again. It tends to be more difficult for older mills – often operated by smaller companies – to take the same approach.
The impact on supplies has been slowly realized throughout the distribution pipeline. In recent weeks, sources have reported tightening availability and fewer buildups. It has become increasingly challenging to procure highly mixed specified tallies that can ship within a week or sooner.
Production curtailments by Western S-P-F mills have also contributed to rebalancing supplies and demand, as buyers in northern-tier markets who purchase both species have encountered dwindling availability.
However, some SYP traders are unsure whether the quiet production cutbacks have had any true effect on the overall market. New mills in some producing zones came online in early summer and ramped up output while working out potential bugs that might have surfaced in their systems. Other traders are quick to highlight the extent of fading consumption from the housing sector.
“It just seems we’re still where we were,” one source said regarding supplies and demand. “There’s just no fear in the marketplace.”
After a slight bump in prices in July, the Random Lengths Southern Pine Composite has trended down for most of August and September. Sales have picked up modestly in recent weeks, and narrow widths have stabilized or posted minor increases.