LUMBER The market firmed up to mill asking levels a week or so ago, which…
Steady action last week, with yards covering immediate needs, with some follow thru this week as mills seemed to have drawn a line in the sand. With print coming off in smaller chunks and getting closer to cash, the counters that are being taken by the mills in the Canadian market are getting less and less. With stud mill curtailment announcement this week, it has helped the other mills firm prices and take a small order file. With interest rate hikes looming, will that dampen the market or just help it from taking another big run, which none of us want to see again. Hopefully, it just stops the tailspin we’ve been going thru lately, and we get back to decent trading range. US housing report this week coming out as well, see what effect it has??
Print was off 22.5% last week and still little to no buyers. This week buyers are still able to get levels well under print. I’m hearing rumors that eastern market is sniffing around, and mills are getting to a break even, so hopefully we will find a bottom soon. Wholesalers are backed up with contract wood and are selling lift lots at truck load prices to keep wood turning.
Tolko still otm on the cash market, and will probably be that way for some time, as the HP mill press must be replaced and that could be up to a year or more. It has had no effect on the market as it still coming down. LP, Norbord, Weyer are able to pick up the volume in the west here with no problems, there is ample supply around. This market is still in the correction phase as there is still plenty of room to come down. Retailers are just getting inventories in line and purchasing short term needs.