Lumber prices have made quite a comeback this year, climbing by 25% in January and nearly erasing the decline suffered in 2018. Just in time for the market to give a boost to the demand before the spring building season.
Looking ahead, though, analysts urge caution.
The lumber market may be overbought. The same thing happened last year, when prices rose to an all-time high and then dropped.
Lumber was in short-supply early 2018, due to U.S. duties on imports of lumber from Canada that led to tighter supplies.
New this month is the uncertainty surrounding China’s lumber demand. Talks between the U.S. and China to reach a trade deal continue.
Show Prep Source: https://www.barrons.com/articles/this-years-lumber-rally-may-not-last-51549623600
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