Freres Lumber Company’s April market report

Low Inventories Keep Prices in Check

Inventories continue to be lean for Freres Lumber’s end use products. Plywood prices have gratefully retreated very little even though sales volumes have declined over the last few weeks. Few producers seem to be willing to absorb price declines. Substitute products, like OSB, have also experienced significant price increases which should support pricing. It’s hard to blame Northwest producers considering log prices remaining stubbornly high as we enter the 2nd quarter of the year. Log inventories are still lean at some large producers and some are purchasing lower quality logs than typical in order to keep their operations going on typical schedules. While our log supplies are solid at the moment, it has taken very high prices to increase our inventory. We hope that the Spring will bring some reprieve to raw material prices.