Although the eastern mills had little new material to offer in the spruce lumber market yesterday, there was enough made available that helped traders have a very strong sales day. Once again heavy demand fueled the activity. Retailers, manufacturers, and distributors latched on to much of what was offered as ongoing logistical issues prevailed. The quick rebound in eastern prices enabled a two-tiered market to develop. Wholesalers worked their speculative positions well below replacement costs, not wanting to take any chances with the volatile lumber market.
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How does that work?
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Thanks Bill … hope all is well .
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wholesalers will buy from the mills without selling the item at the same time. The hope is that the item will appreciate in value and allow a better profit to be had on a future sale. if the replacement cost appreciates quickly from the mills, often times the wholesaler will be happy to sell at the price they originally attempted to get, presenting perceived value to the customer to save monies to buy from them instead of the mills and their higher asking prices.
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All is well and I trust the same for you Michael. Thank you!
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Yeah having fun
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