SEATTLE (Scrap Monster): The unprecedented rally in lumber prices has begun to falter, says Oregon-headquartered Random Lengths Publications, Inc. in the recently released industry newsletter.
According to them, the selling price of two-by-fours made from Western spruce, pine, and fir stood at US$1,470 per thousand board feet during last week. This is in comparison with US$1,600 per thousand board feet recorded during the week prior to that. This is the second consecutive week that the prices have registered decline after hitting record-high of $1,630 per thousand board feet in mid-May this year.
Although the benchmark prices have now declined from its record high, lumber cash prices are still four times higher upon comparison with the benchmark of $373 per thousand board feet during early June last year.
It is unpredictable as to how long the choppy rally will continue. It may take time for the markets to stabilize. The wood prices are likely to remain at lofty levels through 2022. The floor for lumber cash prices are predicted at higher levels of minimum of $500 next year, which is significantly higher when matched with the decade-low bottom of $210 in 2011.
The Random Lengths newsletter also cited ongoing imbalance between lumber supply and demand.
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