Sales ramped up for the mills in the eastern spruce lumber market yesterday, doubling the volume of transactions from the previous day. Retailers were buyers, wanting to cover the business they knew they had coming. Many tried to push deliveries well into February, but the mills were not willing to hold deliveries that far. They wanted to ship material they had on the ground. News from out west that Sinclair will be shutting down three mills completely for two weeks starting Jan 30th had its impact in the marketplace. They are one of the largest producers of 8’ material in the world.
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I’ve been hearing lots of new of shut downs… is this typical for this time of the season?
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No it is market driven. Typical when the mills continue to lose money on every shipment going out the door.
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That seem like a pretty good reason to stop production. Further, that is good to note as a market bottom indicator for mills in those markets.
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