CIBC report - Lumber Prices Continue To Slide"Random Lengths’ mid-week prices (published Tuesday evening) showed a continued decline in lumber while panel prices were flat. On the lumber side, W. SPF prices declined by 6.5% or $95 since last Friday to $1,375/mfbm (+271% Y/Y), while SYP 2x4 prices fell 7.0% or $86 to $1,150/mfbm. Prices of both grades are now off 16%-18% from their all-time peak three weeks ago. The Random Lengths Lumber Composite was down 4% W/W to $1,391.
The trade magazine pointed to a more bearish tone as lumber prices continued to descend. In SPF, the downward trend in pricing from last week continued, with multiple mills looking for trading levels. That said, some producers limited offerings given order files into the end of June or beyond. In SYP, buyers remained on the sidelines, while demand from box stores and treaters continued to erode. Dealers restocked only as needed as they continued to work through existing inventories. Trucking shortages persisted, causing shipping delays for nervous buyers waiting on higher-priced orders."
My note: Buyers have to return to the market sooner than later, this will keep demand up. Lumber prices are still well above 2020 levels and not far off of their peaks.