Brian Leonard, an analyst with RCM Alternatives said,
“The tumble marks a stark turnaround for the common building material after strong U.S. construction demand during the pandemic spurred a surge in orders for lumber, causing prices to more than quadruple to their May peak and fueling inflation concerns. Sawmills have since increased output, and a shortage of other building supplies such as siding and windows has slowed the pace of construction”
“While most of the wood out there today is pegged for a job site, the slowdown keeps it all backed up,” Leonard said. “The industry has to work through that issue before it goes back to the mills to buy. That is forcing the mills to lower prices daily to get rid of prompt wood.”
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