Most softwood lumber and panel prices dropped significantly on a holiday-shortened week in Canada, as customers were well stocked with wood and producers faced shrinking order files. All of which is normal for this time of year. Something very interesting is that this current price matches very closely to the same week in 2020. Are we in for a repeat of that trend line as this year will draw to a close?
It is impossible to say right now, as there are some quite different circumstances which have a powerful effect on lumber prices. Most notably: increasing mortgage rates, which are dampening home sales and house prices. At the same time, it is important to note that the ratio of investor buying of houses and property has been steadily going up since 4Q 2021. The lending for investors is quite different; these players are not affected by mortgage rates.
Dropping markedly after two weeks flat, for the week ending August 5, 2022 the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$610 mfbm, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. This is down by -$74, or -11% from the previous week when it was $684, and is down by -$61, or -9%, from one month ago when it was $671.
FULL STORY: https://madisonsreport.com/2022/08/17/lumber-prices-dip-as-seasonal-slowdown-arrives/
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