Wealth management firm says, lumber 'super-cycle' is on the cards

VANCOUVER (Scrap Monster) : The professional wealth management firm RBC Dominion Securities expressed the view that the lumber ‘super-cycle’ is about to happen, mainly on the grounds of accelerated US housing recovery.

The RBC had earlier held the view that the ‘super-cycle’ would eventually happen in 2016/17. Seeing the sudden recovery in US housing sector, the firm now believes that the lumber super-cycle would happen early towards the end of 2014. RBC also sees increased rate of mergers and acquisitions to take place during the next two years.

Earlier, the International Wood Markets Group also had predicted that the North American lumber prices would soar in 2013 and reach record highs in 2014.

The lumber production in the US and Canada has shown significant improvement during entire year 2012 and the early months of 2013.

The total combined lumber output by the US and Canada during 2012 increased by 6% in comparison with the previous year. During the period from January to February in 2013, the US lumber production has shown a rise of 9.5% when compared to the same period a year ago. The output by Canada during the initial two months during this year was 7.2% higher than that during the same period in 2012.