Forest2Market Launched Lumber Markets Outlook for 2022

Several factors are likely to have potential impacts on North American softwood lumber market this year.

SEATTLE (Scrap Monster):  The latest market study report Forest2Market analyzes the lumber market performance during the previous year and shares its outlook of the markets in 2022.

The biggest surprise for the market was the skyrocketing softwood lumber prices, which hit a new record high. The market has been experiencing wild price volatility over the past two years, especially during the final quarters of 2020 and 2021.

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The significant fluctuation in U.S. housing starts data over the years has impacted the demand for finished lumber month-over-month. For instance, the housing starts which witnessed a month-on-month decline by 2% in October 2021, recorded 12% surge in the next month. The lumber inventories witnessed recovery in late Q2 2021, but prices witnessed huge decline by around 60%. This is despite steady demand from the homebuilding sector.

Several factors are likely to have potential impacts on North American softwood lumber market this year. These include transportation/supply chain pressures, seasonality and weather challenges and trade uncertainty. The U.S. Department of Commerce’s proposal to double the average duties on softwood lumber imports from Canada is feared to add another layer of complexity to the market, which is already under stress.

Meantime, Forest2Market expects housing/remodel sectors to drive stable softwood lumber demand during the current year.

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