It was a solid start to the week in the eastern spruce lumber market yesterday. Demand was strong throughout the day resulting in a steady dose of orders for both the eastern mills and distributors. Although there were some discounted opportunities, the heightened activity boosted resolve and confidence in dealers to moving forward and buying what was needed. With many items selling below production costs over the last several months, there was much concern and talk by not only the U. S. mills but also with European suppliers to what can be done to offset the imbalance of supply and demand.
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Hi Bill, what do you think caused that recent imbalance of supply and demand?
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Supply has been greater than demand for a while. Prices have tested market lows on several products because of it. The mills have made and are continuing to make adjustments to production keeping prices more stable recently… As more adjustments are made and with a constant stream of demand that imbalance will change to less supply and pressure on prices.
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Does supply seem to be dwindling?
Are lead times the best indicator for supply changes? If so, are you seeing lead times going out?
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Lead times are a good indicator but at the moment the mills are struggling to maintain sales and not building up lead times. most eastern mills can deliver mid-April
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