Resolute Forest Products Bullish on Future Lumber Outlook

SEATTLE (Scrap Monster): Remi Lalonde, President and CEO, Resolute Forest Products shared bullish outlook for lumber in the years to come.

According to him, lumber prices have witnessed significant surge over the past several years, following weakness for a decade following the financial crisis. The prices have cooled off from their recent peaks, as mortgage rates have risen. Still, the current lumber prices stand significantly higher, compared with historic prices. The prices are expected to see several strong years ahead, primarily on account of several underlying macro economic factors that seem to be driving prices higher.

ALSO READ: Resolute Announced Strong Balance Sheet and Liquidity

The construction market, which has been dormant during the pandemic, has started to pick up.

There has been significantly higher inventory level for lumber at the end of the initial quarter of 2022 especially due to rail road challenges and winter weather conditions. There is a definite improvement in the second quarter. Although the lumber inventory levels are unlikely to return to normal levels by the end of Q2, it should do so at least by the end of the year, Lalonde noted.

The acquisition of the company by Paper Excellence will drive further market growth. It will help to capitalize on opportunities it never had before.