Monthly Archives

September 2014

Lumber Pricing September 2014

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John-Colley-Final-1024x10242×4 and 2×6 lineals are currently trading at some of their highest levels all year but there are signs pricing may fall in the fourth quarter.  As the futures market closed on September 15th we saw a discrepancy between the futures price and the asking price.  Future pricing of lumber was below the actual asking price of lumber and this left many retailers at a standstill.  Given these mixed signals we chose not to buy September futures and instead wait until the market shows a bit more stability. As always, I will keep you informed as changes occur.

Currently, 2×6 studs are trading at a premium over 2×4 studs.  This pricing is opposite of what we experienced last year and earlier this year.  Studs are following the same trend with 9′ trading at a premium to 8′.  The reality is that 8′ studs are simply more economical to produce than 9′ studs.

OSB pricing continues to be flat as the mills continue production at or near break-even prices.  The Weyerhaeuser plant in Grayling, MI is in the midst of taking a three week maintenance shutdown which has taken a big chunk of production out of the region.  In my opinion there could be a slight ‘bump’ within our region which would impact the price of shipping, but I cannot see any significant changes at this time.

Overall, it appears this year is shaping up to be very similar to 2011 and 2012. If anything pricing is slightly above last year.  Everything is panning out towards the typical elevated seasonal market with a fall pullback.  I wouldn’t expect any real pullback in pricing until the end of the year.  Keep in contact with your sales staff for any “breaking news” but at this point we are not seeing any significant changes.

Trex and Zeeland Lumber & Supply

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As our children settle back into their school routines our attention changes focus from the exterior of our home to the interior.  While it may be true that days are getting shorter there is still plenty of time to upgrade your outdoor living space in time for fall festivities.

Trex is one of the most recognized brands in the world of composite decking.  Trex offers numerous colors, style options and even lighting!  Everyone here at Zeeland Lumber & Supply is excited to offer such a great product to our clients.

Trex Options: 

Colors – Trex decking Save-on-Trex-Decking-247x300comes in a variety of colors.  Often customers will mix and match colors to give depth and richness to their outdoor living spaces.

Lighting –  Even if you have an existing Trex composite deck you can add lighting to the deck boards, post caps or stairs.

Design –  Creating the perfect outdoor living space can be daunting.  Zeeland Lumber & Supply has staff on hand to help you create the perfect area for you, and your family.

 

Putting the Pieces Back Together at Clay Ave.

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Mike-Dykstra-SmallSince the tornado ripped through our office and building on Clay Ave in Wyoming, we have been planning the rebuild.  Our initial focus was to be sure we could meet our customers’ demand for truss and wall panel components.  By increasing our Elkhart facility production capacity, outsourcing orders, and implementing temporary production on Clay Ave, we have been able to meet the needs of our customers.  In conjunction with production planning and scheduling, we have been planning our rebuild.  I am pleased to share with you that our new building will begin construction this month.  The anticipated finish dates are December 1 for production, and first quarter 2015 for the office/showroom.

We are taking this opportunity to improve our business.  The new building will have more production space which will increase capacity and efficiency.  The office space will focus on enhanced employee and customer experiences.  This flagship office space will not only include the truss and wall panel experience, but also product displays for roofing, siding, decking, windows, doors, millwork, and cabinetry.  We will have truss and wall panel designers, product specialists, cabinet designers, and general salespeople all under one roof.  We are planning more meeting spaces and collaborative spaces for our customers and our employees to interact and plan the building projects.

We are excited about the improvements that we can make with our new building.  As we close in on the finish dates, we will be in communicating with you further.

Lumber Pricing in August 2014

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John-Colley-Final-1024x1024Last month we talked about the spread in pricing between asking levels and futures purchases.  We said at some point the two would come together because there was a relatively large spread. Cash did come down briefly but when the two met they both started rising together.  The uptick wasn’t much of a seasonal surprise, when this happens mills overproduce certain lengths which they tend to move off at a discount.  Pay attention to odd length’s such as 8’s and 14’s to get a better value on lineal if lengths are not critical.

Studs also continued their slow upward trend with the exception of 2x4x104 5/8″ which have been relatively flat.  116 5/8″ studs are becoming much more common which may be one of the factors contributing to the very high 2x4x10 and 2x6x10 asking levels.  We have plenty of 116 5/8″ studs in stock should you need a precut stud for a 10′ wall.

OSB is up but it is still trading at the bottom of the trading range.  Weyerhaeuser is moving into their planned shutdown so we can expect higher costs with freight factors and lack of production in the North Central region. As of today, plywood is trading at very high levels. I recommend that plywood subfloor users take a look at premium products such as Advantech.  ½” plywood users may even want to consider using thicker square edge OSB. Having put nails in both products, I know it feels better nailing plywood than OSB but these enhanced products are solid and hold up well.  Advantech actually has the best no-sand warranty on the market (500 day no-sand and limited lifetime transferable warranty).  Full warranty details on Advantech can be found here.  Again, this is in stock at Zeeland Lumber & Supply.

Wide dimensional has been flat until the last two weeks.  Pricing isn’t running away but it appears to be grinding upwards.  Look for alternative species with equivalent design values for Hem Fir or Doug Fir should major spreads start to develop.  We inventory 8′ to 16′  #1 Southern Yellow Pine in 2×8, 2×10, and 2×12 should you need anything with higher design values.  They work very well for pole barn carriers and you can sometimes get more length out of them when you need to frame rafters.

From my desk, I think it looks like we are in for the typical fall push.  If you have any projects coming that are particularly heavy in any specific dimension or length please let us know.  We continue to work diligently for you to provide solutions and value.