Sales were steady in the lumber market yesterday. Orders were heavily reliant on distribution as the mills had very little to offer, especially for delivery by year end. The few items the eastern mills had were priced quite higher than previous sales, drawing little interest from buyers. It was difficult for many to keep up with the recent surge in prices. Revisions were in constant motion for distributors and retailers. The low supply of new production from the mills is disconcerting, making it essential to manage current inventories. No one wants to run out or not have when needed.
Any idea what explains the low supply of new production?
the mills are trying to catch up with their order files and do not want to make commitments they make not be able to fulfill. They are being cautious until their sales slows.