Demand started to show its true self yesterday in the eastern spruce lumber market as activity and sales ramped up throughout the day. The eastern mills and distributors sold very well, attaining their asking prices, as buyers called in their orders of what was needed. There was little hesitation to buy by clients trying to capture the lower priced items available in the marketplace. With the production cutbacks the mills have executed over the last several months, it will be difficult for them to increase production if demand were to continue, on the path seen yesterday.
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Will be interesting to see where this one shakes out. Looking at prices, we must be near a bottom… but I thought the same thing in Q1…
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There is more confidence by all that demand will increase in the near term. Supply is constant and will be unable to increase production to meet this demand, putting pressure on prices.
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