Lumber prices have plunged 40% in June, the worst monthly decline since 1978. The decline has elicited views that the mismatch between supply and demand was short-lived.
LBS1! is down -5.90%.
- The decline in lumber prices came at the back of its all-time high of $1,670.50 per thousand board feet on May 7.
- Lumber is now down at least 18% this year and is on its way to its first negative, first half in more than five years.
- The decline in lumber prices has been attributed to economic reopening, with more Americans going on vacations at the expense of new building projects or renovations.
- Inflation fears weighed down on lumber as demand cooled, with analysts warning that the mismatch between supply and demand could not last forever.
- With weekly mortgage demand down 6.9% last week, the lowest in almost one and half years, analysts see the booming housing market fizzling, which has added pressure to lumber.