In a note, RBC analyst
Quinn points out that earnings reports from major building supply retailers
Home Depot reported comparable
Earlier this week, CIBC reported that a lumber composite price from industry trade magazine Random Lengths had jumped by one per cent to a record high of
It says, however, there's been a slowdown in the pace of new orders as buyers grow wary of risk in view of declining SPF futures prices and mills work on filling orders for delivery deep into next month.
OSB panel prices, meanwhile, were reported to have jumped 1.6 per cent in the north central region to a record
"While prices are unlikely to remain at these lofty levels, tales of lumber/OSB's demise seem greatly exaggerated," said Quinn in his report.
"In our view, continued demand strength and a limited ability for the industry to increase production are likely to result in a tight supply-demand balance over the short-to-medium term. This should support pricing well above historical levels."
This report by
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