Lumber prices rally as market spooked by supply concerns

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While supply chain disruptions arising from wildfires were not the primary driver behind June’s bullish sentiment for softwood, the psychological impact of uncertainty lingers as crews battle July fires in the forests

Cash prices slumped to US$335 for 1,000 board feet of Western SPF in early April. For the rest of 2023, there will likely be continuing volatility and pressure on prices to climb, though a narrower trading range than what the market saw with wild pricing swings from 2020 to 2022.In May, there were more than 1.63 million housing starts estimated in the U.S. on a seasonally adjusted annual basis, according to data released on June 20 by the U.S. Census Bureau and the U.S.

“As June passed the midway point and questions swirled about overall supply given ongoing wildfires, demand was strong for lumber, studs and panels,” Madison’s Lumber Reporter said. “Other factors supporting lumber prices in the near term are easing European imports, as well as the lagged impact from B.C. capacity curtailments,” Mr. Mamtora said.

The 2006 Canada-U.S. softwood agreement expired in October, 2015, with no replacement. In the latest round of the trade dispute, Canadian producers have been paying U.S. lumber tariffs since April, 2017.

 

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