Do it Best Urges Mills to Base 2027 Lumber Contracts on Prices from Random Lengths' Rival, PricePulse

(Editor's Note: This story was updated Sept. 23 with a statement from Fastmarkets)

By Craig Webb

Do it Best's VP for Lumber & Building Materials announced Sept 15 that his co-op will ask all its mill partners to price lumber and panel contracts in 2027 using Forest Economic Advisors' PricePulse rather than with Random Lengths, the service published by RISI's Fastmarkets. Russ Kathrein justified his broadside against the traditional pricing guide as a move to modern times, but the change also reflects anger by dealers and distributors over Random Lengths' subscription price.

Speaking at an FEA event in Portland, OR, Kathrein (pictured above) said PricePulse was better than Random Lengths because the softwood lumber prices that PricePulse lists are based on actual transactions, while Random Lengths' numbers are compiled from surveys and calls to lumber traders.

"It is time to stop measuring a 21st century market with 20th century tools," Kathrein's prepared remarks said. Later he added: "The question isn't whether Random Lengths was a valuable tool. It absolutely was. In fact, I relied on it most of my career. The question is whether a methodology that was groundbreaking decades ago is still the best and

most accurate methodology available for establishing market prices in 2027."

Using surveys to determine current prices tend to smooth out price movement because people "naturally hesitate to report dramatic swings," he said. "Editors know markets can reverse. Sources can talk up their positions. Judgment gets introduced into the process."

Kathrein said he also supports PricePulse to foster competition, presumably with Random Lengths. (Aside from PricePulse, Madison's Lumber Reporter also is well-known for publishing softwood lumber pricing data.)

"Competition improves service," he said. "Competition lowers costs. Competition forces everyone to get better. Yet for much of my career, our industry has effectively operated with one dominant benchmark provider. That's not healthy for any market."

Complaints about the rising cost of Random Lengths subscriptions have been common ever since RISI purchased Random Lengths' parent, Fastmarkets, in 2017. Fastmarkets' website doesn't list a standard subscription price for the product, but anecdotal reports suggest many subscribers believe they're being gouged by a service provider that for decades has dominated the market.

Do it Best offers its members a group rate that it had to double last year, and Kathrein told Webb Analytics that even 2026's doubled member rate didn't come close to covering Do it Best's costs.

PricePulse is only a recent competitor, having launched publicly in April 2023, and then only for Southern yellow pine. Now it publishes roughly 1,400 prices, not much below Random Lengths' 1,600.

In response, Fastmarkets on Sept. 23 issued this statement:

"Fastmarkets has been a leading provider of independent price reporting and market intelligence for the forest products industry for decades. Our methodologies are publicly available and supported by a robust governance framework designed to promote transparency, consistency and market confidence.

"Our assessments are developed by trained editors and analysts using published methodologies and established editorial standards. Every assessment benefits from expert analysis and human oversight to ensure market conditions, liquidity, price formation and relevant market developments are considered appropriately before publication.

"Fastmarkets' pricing processes are supported by experienced editorial staff operating within clearly defined controls and governance procedures. Our methodologies are continually informed by market engagement and feedback, with formal consultation processes in place whenever material methodology changes are proposed.

"We welcome competition and believe benchmark providers should be evaluated on the transparency of their methodologies, the strength of their governance processes, the breadth of their market engagement and the rigor applied to price assessment. Fastmarkets remains confident in the strength of its methodology, the robustness of its processes and its ability to provide trusted benchmarks relied upon throughout the forest products industry.

"Fastmarkets remains committed to delivering independent, market-reflective pricing and analysis that support informed decision-making across the global forest products sector."