05 Jun, 2021 13:15 am

Lumber Prices Slump As Historic Boom Hits A Wall

Lumber Prices Slump As Historic Boom Hits A Wall
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

For the last 18 trading sessions, lumber prices have come under pressure amid signs that an unprecedented rally may be waning.This suggests that sawmills could be catching up amid the flurry of demand from North American homebuilders, along with supply chain issues, which created massive supply constraints, which propelled lumber prices to record highs."Record softwood lumber prices amid an acute supply shortage appear unsustainable and may correct sharply from a level that's quadruple the 10-year average," Bloomberg analyst Joshua Zaret wrote this week.But with lumber prices adding tens of thousands of dollars to new residential builds, some builders have paused or halted new construction.

Last week, Patel told Bloomberg that even though home renovations are easing, lumber prices could maintain around the $1,000 handle through 2021.20 per 1,000 board feet, extending last week's first loss since January.

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