The lumber market ended last week with high demand, increased activity, and a plethora of orders for many concerns. Depressed prices, low inventories, and a growing need to buy finally inspired and motivated buyers. By mid-week, news started spreading that the mills were selling. Participation quickly became widespread and encompassed a large range of products. The volume of orders took many eastern mills off the market as the week ended. Mill shipments extended into the first couple weeks of July. Distributors went into a defensive mode, firming up prices.
Would you say a big reason that people are buying is because other people are buying?
That is a reasonable assumption. People become more confident if others are following suite, but also many inventories were low and a prevalent need does exist. People were waiting for a spark or a reason to step in.