True Winter Weather Brings Lower Lumber Prices
As December dawned winter weather came on across North America, causing the usual drop in construction activity thus lumber sales. Price levels dropped accordingly, but only for benchmark items. Sellers were able to keep prices level on many dimension lumber and panel items.
However, the obvious slowing demand into the end of the year suggested further price drops to come. Producers responded by cutting production, which is normal for year-end. This year several large sawmill operators are curtailing a bit earlier than usual, taking more production volumes offline than in the past couple of years. This is a good response to market conditions, because it will keep supply better in line with seasonal dropping demand thus keep prices from falling much further.
In the week ending December 2, 2022, the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2x4 #2&Btr KD (RL) was US$400 mfbm, which is down by -$75 or -16%, said weekly forest products industry price guide newsletter Madison’s Lumber Reporter. This is down by -$86, or -18%, from one month ago when it was $486.
FULL STORY: LinkedIn
