MARKET UPDATE – JULY 23, 2021
The long-anticipated drop in lumber prices has finally come to fruition as dimensional spruce is approaching levels not seen for over a year. Aside from a few weeks last October and November, prices for almost everything lumber related have been on the rise since April 2020. Numbers finally began to crack in early June and by the end of the month were dropping drastically. Mills were defiant in facing the fact that a correction was indeed happening and held on as long as they could until their inventories started to build and they had to entertain counters to move lumber. But the vast majority of retailers, wholesalers, reloads and lumberyards were hardly in a mood to load their warehouses. Other than hand to mouth purchasing to cover inventory holes, there hasn’t been a rush to buy and prices have continued to reflect this. Predictions that a rebound in pricing was imminent as soon as buyers stepped in to bolster their skimpy stock levels have gone unfulfilled as trading levels remain unsteady. The market has been unimpressed with the talks of wildfires, mill shutdowns, the rising price of logs and continued transportation woes. Buyers continue to stay cautious that we still haven’t found the bottom and thus far that has paid off for many. OSB, despite supposed resin shortages and overall lack of supply, has also finally given way to a major correction. Although there is still a concern for the availability of underlayment, OSB supply continues to improve and costs are continuing to fall.
These decreases are certainly a blessing as contractors and end users have been under the strain of a relentless market for too long and inflation overall continues to cast a shadow on the economy. These lower costs have begun to have an impact on our market and will continue to ebb for the foreseeable future. Just as retail prices lagged behind incoming inventory costs on the way up, the same can be said for the track downward. Regardless of market conditions it’s always Big C’s intention to provide material at a fair price and we look forward to passing along these decreases as quickly as possible. As always we will do everything we possibly can to help to make your businesses successful and profitable.
Unfortunately there has been little relief on the non-lumber side of the business. Many product lines continue to be on allocation with extremely long lead times. Continue to try to stay ahead of the game when ordering your interior and exterior doors, sidings, cabinets and windows. The lack of available quality labor along with trucking issues continue to strain the supply chain.
Hoping everyone is having a safe and prosperous summer.