Kyle Little, chief operating officer of New York-based wholesaler Sherwood Lumber, told CNBC Thursday.
“The Exchange has seen new interest in the last three weeks,” said industry veteran and former sawmill. “Our new interest is now turning into real orders, the people doing business here later this year, especially the commercial and multi-family unit segments.”
Little’s comment on Thursday was when timber hit a low of $ 480.40 per 1000 board feet. This is the lowest level since July 8, 2020, when timber was traded at a low of $ 465 per 1000 board feet. Lumber prices have been on track for the 13th consecutive week of losses after falling by more than 9%.
In June, lumber futures fell by more than 40%, the worst month ever since 1978. After the pandemic shut down, the fall happened as Americans began to leave their homes instead of pursuing refurbishment and construction projects. At the beginning of May this year, timber prices hit a record high of $ 1,670.50 per 1,000 board feet after a pandemic downturn in April 2020.
Current timber prices “absolutely make sense,” he said, referring to the industry’s recovery from a pandemic sold-out in the first and second quarters of 2020, after which costs have increased significantly. In June, as timber traded in excess of $ 1,100 per 1,000 board feet, Little told CNBC that he advised CNBC to anticipate further easing of timber prices and wait for people to start construction projects.
The timber market is now “passing this equilibrium stage or seeking equilibrium,” Little said Thursday.
“What we’re finding is that the level of support that follows the bottom of the pre-Covid trend is very bullish,” Little said. “This will also make many of us in the timber industry feel much more comfortable rebuilding inventories here in the second half of this year, and will predict the demand we are currently seeing.”
Sawmill executives say falling prices have rekindled demand for construction projects
Source link Sawmill executives say falling prices have rekindled demand for construction projects