News of a drop in housing starts and permits, along with a selloff in the futures market quelled the volume of new orders in the lumber market yesterday. Buyers paused and wholesale quotes turned aggressive adding to the diminished activity. Despite the news, retailers continued to buy and replenish inventories as they sold. Their business remains very strong and products are flowing unabated through their yards. There is also much concern on the lack of many items available from the mills and the ongoing problems many face with labor and logistical issues.
8 Likes
@william_giguere This is quite interesting! One thing I am curious about is what happens as we head into the winter? Do we continue to see prices go up, or will there be too many headwind pressures that bring prices down? It seems as if them market may be starting to show some cracks. Wonder what your thoughts are on this?
6 Likes
Housing and remodeling remain very strong. Truss manufacturers have work well into Q1. The lows of the year are behind us. I am hoping that prices do not escalate as they did earlier this year but I do see price appreciation continuing because of the lack of overall building products and continued logistical issues.
6 Likes
@william_giguere so no respite on lumber prices until Q1 … Are truss and other manufacturers able to ramp up and accelerate production?
3 Likes