Monday, March 22nd, 2010
As reported in this month’s WOOD Markets Monthly International Report, Chile has large U.S. market shares for specific pine lumber, moulding and manufactured products. With the sudden disruption to Chile’s supply line, the run on prices has already started in most of those products dominated by Chilean supply, including softwood plywood, finger-joint and MDF mouldings and finger-joint blocks and blanks. This is a result of the dominate market share of imported pines from Chile and other regions of the Southern Hemisphere that have evolved following the spotted owl crisis of the early 1990s in the U.S. pine lumber, moulding and millwork market.
Southern Hemisphere plantation pines represent about two-thirds of U.S. softwood finished pine moulding consumption and 40% of industrial clear pine lumber feedstock consumed at U.S. millwork plants. Chile has become the leading supplier from the Southern Hemisphere to the U.S. market of clearwood pine (industrial) lumber and finished pine mouldings as well as MDF mouldings. This is why U.S. pine lumber and pine and MDF moulding prices are now exploding as a result of the disrupted supply chain from Chile. Some product prices have already jumped 25-35% and some further increases across the board are expected before the supply shock cools. Chile’s U.S. market share is about 50% of imports and about 25% of moulding consumption.
While it is possible that North American production with products shipped from Brazil, Argentina and New Zealand could fill part of the short-term gap in U.S. pine markets, log inventories, mill shifting arrangements and marketing efforts taking place in export markets could limit this supply response. Prices on a number of pine products are expected to keep rising through May.
With some generally lean inventories, wholesale inventories may be drawn down if the disruption lasts more than six to eight weeks. This is likely to start showing up at big box stores first.
Chile’s earthquake — the fifth-strongest since 1900 — killed hundreds, destroyed or heavily damaged at least 500,000 homes, and tore apart highways, buildings and other infrastructure. Reconstruction is now the government’s top priority, and some of Chile’s wood products output is highly likely to get redirected into the rebuilding process.
More updates will be posted as they become available.
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Thursday, March 11th, 2010
Shelly’s Kitchen Department is currently updating many of our displays. Tremendous savings are there for you.
Special pricing upto 75% off select displays and special arrangements! See your salesperson for what displays are available and the fantastic savings to be had.
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Monday, March 8th, 2010
Effects of the Earthquake in Chile -Update
From current indicators, the recent earthquake in Chile will have an immediate and long term effect on moulding and cut stock( boards) supply to the U.S. Major moulding manufacturers are reporting damage to manufacturing facilities, in addition to damages done to highways and ports. This will obviously affect the supply which will in turn affect the price.
Updated March 9: As of March 1 most mills were “off the market”. Mills are determining what material has been shipped and will be delivered, what was lost at the mills and what sank at the ports. The containers of material that are on the water will deliver but there is not a clear picture of which material will be available. The other material will be lost. No one knows when the mills will open again or when the roads and ports will be repaired to ship the material. Suppliers are working hard right now to get material to alternate ports. There is a possibility there will be a period 45 to 60 days from now where there will be a pause in deliveries from South America. This is a volatile and fluid situation. Prices will increase over the coming months as the supply and demand of the market dictates. We will keep you posted.
Shelly’s is working hard on your behalf to maintain a stable and adequate source of material. We are being told by all suppliers to expect some shortages of material and possible allocation of inventory. Prices are definitely going to rise. We are also being told to expect these disruptions to continue for the next 4-6 months.
Watch for additional information as it becomes available.
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Wednesday, March 3rd, 2010
March 18 -
7:00 AM to 8:30 AM Builder Breakfast
Francomia Heritage- Sponsored by Andersen.
See the new products Andersen has to offer for 2010. To reserrve your spot contact your salesperson or Dawn @ 215-723-4304
March 25 -
Kimberton Yard 11:00 AM to 1:00 PM
Contractor Lunch and Learn by WOLF.
Sponsored by Wolf with AZEK Decking & Intex Millwork Solutions.
Contact Debi @ 610- 933-1116 to reserve your spot
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