A precipitous and steep drop in prices on many items capped off last week’s highlights in the lumber market. This tempered spirits and kept buyers at bay. Also, traders returned from the Montreal Wood Convention enthused but aware of the realities of the market, high supply and low demand. The quandary being the ongoing logistical problems. Mill shipments have not been quick enough to make a difference. Adding to this a futures market that ended the week higher, suggesting price stabilization, along with many dealers facing a traditional busy time of the year.
Thank you @william_giguere! How volatile the market is! We heard at the Montreal Wood Convention, multiple times from multiple industry players:
- "we have a lot of demand "
- “we don’t need to find customers – they are coming to us”
- “we need to look for suppliers”
- “suppliers are our pain point”
- “inventory is the problem”
how quickly the market turns now! Plenty of supply and the buyers are more hesitant. So the sellers will have to start hustling now, not just their procurement counterparts!
Thank you for your swift and daily insights @william_giguere !