Information, resources, and news from Shepley for building professionals on Cape Cod and Nantucket.
2021 was a very rough year for the lumber market and, unfortunately, December was a particularly hard month. On December 1st, the US Department of Commerce increased the Softwood Lumber Duties to Canada an additional 8.99% to 17.90%.
Sales were relatively strong in Nov, but not enough for the market to continue its surge. After 9 weeks of an upward trajectory, the market finally stalled as foul weather, labor, trucking, & material shortages had their effect on forward progress.
Sales were strong in October, caused by an overall high demand as well as a mad-scramble to obtain fast-delivery lumber. The trucking shortage lead to unexpected outages for many dealers as buyers did little buying ahead of their needs.
“Balance isn't something you find, it's something you create.”Jana Kingsford
The market finally bounced back in early September, but not to the expectations that traders and mills had thought. Timing seemed to be the biggest factor as Labor Day coincided with the lowest numbers the market has seen since the spring of 2020.
Unlike previous cycles, prices have never reached such stratospheric heights so this “corrective collapse” has been catastrophic to the resellers who have to answer to customers demanding to see immediate price relief, and suppliers need to react.
Coming off of record highs, lumber pricing continued to tumble in July. Although the industry as a whole is still quite busy, sales weren't as vigorous as previous months and it appears that the supply chain is replenishing sooner than anticipated.