Ongoing Winter Weather Keeps Lumber Prices Down
As more cold and snow descended yet again across North America, construction activity remained stalled thus lumber sales were similarly slow. Those purchases which were made were generally for just-in-time buying or immediate needs; almost no one was stocking up on inventory yet for this looming spring building season.
For their part, sawmills could only hold off increasing production volumes to keep supply in line with ongoing muted demand. Stocking wholesalers tried to play the inventory-advantage game, only to end up selling small volumes at below current replacement costs. All eyes were on the weather, as expectations were for a burst of building to come as soon as the weather improves.
In the week ending March 3, 2023, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$400 mfbm, which is down by -$17 or -4%, from the previous week when it was US$417 mfbm, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter.
This is down by -$56, or -12%, from one month ago when it was $456.
FULL STORY: https://lnkd.in/gXkqjBv5
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