With little downside risk being seen by buyers, Euro lumber started selling swiftly out of all port locations yesterday. The mills and wholesalers with inventory positions at the ports were not pushing up prices yet but they were extremely happy to see the momentum going to get port inventory sold and shipped out. A handful of European mills with inventory on the ground in Europe have delayed their shipments of their next vessel volumes until port inventory here in the US starts moving consistently. If the feeling yesterday and out of the gate this morning is any indication then those mills should be confident enough to resume shipments again in February for March arrival. Just in time for the spring building season.
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I have no direct knowledge of this but David Stallcop has his hand on the pulse. Our shipments are now back to pre-pandemic levels. We’re focused on improving our production efficiencies and value-added products. The economy, thus the housing market, is better than the “bears” would lead us to believe.
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@David_Bagdy “bulls” have entered the chat
Do think this increased level of activity and shipment will stick around?
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This is a difficult question to answer. There seems to be little consensus on the demand side of the market. We are running at 80% capacity and see nothing on the horizon that would warrant curtailing production.
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@David_Bagdy @David_Stallcop @Thomas_Mende we are running a poll today
Pakira Poll
to gage people’s predictions for demand and therefore prices for Q1. We’ll track reality and at the end of Q1 contrast the results.
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Euro lumber in the US back to pre-pandemic levels!
One thought is that existing house remodels/renovations are up given less new home construction/purchases. In this case the LBM volumes per house is lower, but if the overall number of homes undergoing renovation is higher, things may balance themselves out …
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