North American lumber suppliers cut prices to increase sales

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North American lumber suppliers cut prices to increase sales
A few months of struggle between lumber buyers and sellers brought some big price cuts in mid-June. Suppliers had been cutting prices by increments to increase sales volumes, while customers continued to wait as long as possible in hopes that prices might drop further. The trend line of recent decreases matches almost exactly what happened during July and August last year. As the manufactured forest products industry reconciles the significant changes of the past couple of years, players are looking for understanding of what the “new reality” is. For sawmills and producers, there have been a lot of changes in operations; from sourcing timber as feedstock to delivering completed materials to market. For resellers and end-users there have been a lot of changes to the new housing construction and home sales markets. As we enter what traditionally has been a slower time for lumber sales, with prices usually softer or softening, there are a lot of questions as to whether the previously normal seasonal prices cycle will return. And whether it does or not, what are the new price highs and lows? Registering big drops over the previous week, for the week ending June 17, 2022, the price of Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was US$535 mfbm. This is down by $-125, or -19%, from the previous week when it was US$660 mfbm and is down by -$410, or -43% from one month ago when it was US$945 mfbm. Producers were less generous in their acceptance of counteroffers, leading many…

North American lumber suppliers cut prices to increase sales