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| Bump in lumber production sends prices to 21-month low |
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2005/8/22
Lumber prices in Chicago fell for the first time in three days Friday, resuming a drop to a 21-month low as supply from timber companies outpaced construction demand.
Federal Way-based Weyerhaeuser Co., Canfor Corp., West Fraser Timber Co. and International Paper Co., the largest lumber producers, have increased production, leaving an abundance of wood to sell.
Prices will average $315 per 1,000 board feet this quarter, down from a forecast of $325, RBC Capital Markets analyst Mark Bishop said Friday in a report, citing ¡°supply-side¡± factors. Canadian mills shipped 5.8 percent more lumber to the U.S. in the first half than a year earlier, Statistics Canada said. North American housing starts have gained 5.3 percent from January to July from a year earlier, and lumber consumption rose 6 percent in the five months ended May, Bishop said.
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| Source:http://www.wood365.com |
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