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Seems like a regular run-of-the-mill supply and demand mismatch. Once new mills are open, and existing mills start ratcheting up production, the prices will fal
by 1helloworld1 5y ago
Seems like a regular run-of-the-mill supply and demand mismatch. Once new mills are open, and existing mills start ratcheting up production, the prices will fall.
- cptskippy 5y ago> Once new mills are open That's assuming someone wants to open one. The demand was spiked by the pandemic which is subsiding. According to the article a new mill take 2 years and technology impacted by the microprocessor shortage.
- 1helloworld1 5y agoLumber prices are already falling from the record high. https://finance.yahoo.com/news/lumber-prices-post-biggest-ever-210144368.html https://finance.yahoo.com/news/lumber-prices-post-biggest-ev...
- cptskippy 5y agoWhich makes sense give the vaccine rollout and lessening of pandemic restrictions.
- cmpxchg8b 5y agoDid you read the article? The problems actually started before the pandemic.
- cptskippy 5y agoYes and we're exacerbated by the pandemic. The article said mills lowered production assuming there would be reduced demand during the pandemic but there was increased because people were stuck at home doing projects. Now that the pandemic waining and people are heading back out, is it not safe to assume some of that demand will be subsiding?
- everybodyknows 5y agoStock prices of biggest mill now more than 20% off peak. https://finance.yahoo.com/quote/WFG?p=WFG&.tsrc=fin-srch https://finance.yahoo.com/quote/WFG?p=WFG&.tsrc=fin-srch
- AnimalMuppet 5y ago> Seems like a regular run-of-the-mill supply and demand mismatch. Pun intended?
- webinvest 5y agoLong dated lumber futures are cheaper than short dated lumber futures. This means the market is betting on lumber prices decreasing. The market is not always correct though.