+$2, or -1%, from the previous week when it was $210 and was down -$88, or -29%, from one month ago when it was $300.
Lumber producers kept manufacturing volumes lower to keep supply in line with still-muted demand. Capacity utilization rates at North America sawmills have been well below optimal levels for approximately 2 years, since rising interest rates brought slower home sales thus reduced new housing starts. Solid wood manufacturers prefer to keep production volumes higher, due to the very complex process of securing log supply over a longer term.
As such, maintaining balance between amount of sales and prices can get tricky.
As June waned, lukewarm demand followed an underwhelming spring building season.
As true summer months arrive, it seems this balance has been achieved; as lumber prices reversed recent drops and started climbing.
Keta Kosman
Publisher
Madison’s Lumber Reporter, est. 1952
Vancouver, BC, Canada
604 319-2266