There was less activity in the lumber market on Friday. Depressed prices and uncertainty in the market kept buyers away. There was little interest in buying something that would take a few weeks to get and not be heavily discounted. The focus was on what could deliver more quickly from the mills, especially on products the reloads were unable to deliver themselves. A large percentage of business throughout the week did emanate from the reloads, as dealers kept their purchases selective and limited. Distributors struggled to keep their inventories supplied and available.
Insightful recap from an industry professional— thanks for sharing, Bill!
Hi Bill! I always love your posts! According to your analysis, the market seems to be cooling down due to uncertainty, which tracks nicely with the new Pakira Poll results, where 45% of individuals believe prices will go down, and 43% believe they will stay around the same. Where are your thoughts on the direction of the market in the next few months?
Thank you Madison!
Less volatility and more stability of prices as demand cools, There are many projects ongoing that will keep demand steady. Costs are much higher, raising the breakeven point for the mills and will establish higher lows that we’ve have seen in the past. Lack of manpower will also keep having an impact on the market.