Lumber Prices Firm as Sawmills Trim Inventory

By Andy Johnson | Posted: 05/31/2012 8:57AM

 

Hardwood ReviewHardwood Publishing offers Hardwood Review, Hardwood Leader, WoodLogics and other services  for lumber buyers and sellers in the wood manufacturing industries Sawmill production increases will continue, but will be fewer and less intense over the next two months than the last two, as green prices level out, kiln dried prices begin to soften, and buyer urgency abates.

Careful attention to production levels, spending and credit issues will be warranted. Kiln dried lumber production will nonetheless peak about the time European holidays are normally in full swing, though this year’s holiday impacts will be less evident since much of the region is already in recession.

We continue to be surprised that lumber prices have held up as long and as well as they have. Most mills have avoided building excess lumber inventories and have put in place measures to limit runaway log decks, as well.

It speaks to a smaller, smarter, more nimble hardwood lumber industry that is more focused on profitability than production, and more willing to let demand, rather than capacity, dictate production. It also lends some confidence to our continued prediction that there will not be a wholesale collapse in hardwood prices due to increased production.

 

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