Just two months ago lumber prices were nearing the housing bubble highs. Since then prices have declined sharply, with prices off about 25% from the highs in early May. Source: Business Insider
Some of the decline could be related to additional supply coming on the market, and some due to less buying from China (several sources are reporting that China has pulled back significantly on buying North American lumber).
On additional supply, a few months ago the WSJ had an article about some producers increasing supply: Georgia-Pacific, the largest US producer of plywood … plans to invest about $400 million over the next three years to boost softwood plywood and lumber capacity by 20%.
Lumber prices are now about 25% off the recent highs.
