Along with a relief in temperatures this week we’re also getting some more relief in lumber prices. Most commodities saw a drop this week (with the exception of PT beams), and there continues to be improved availability of materials. I generally stay away from “forecasting,” but I’ll venture a guess this week; I think we’re going to continue to see some relief for a few weeks, likely followed by a slight rebound in prices, and hopefully a slow decrease through the coming months after that.
This forecast (or in reality, let’s call it an educated guess) is based on the big builders continuing to sit it out and allow demand to fall more in line with supplies. I think we will see a rebound in new builds, but we are going to continue to be bottlenecked by delays on the manufacturing side of auxiliary building products (cabinets, appliances, etc). Again, it’s hard to say with any certainty, so please take that as one man’s opinion and not a hard prediction.
Some items continue to be challenging to source, including rebar and some roofing products (here’s looking at you Pabco). Paint is another item that is in short supply, though our main supplier backed off from a price increase, so that tells me that hopefully, they feel the supply chain is looking up. Other items like Cabinetry are still on a 16 – 20 week lead time, so we’re certainly not out of the woods yet. We have recently brought on a line of RTA cabinetry that is high quality and has about a 10 day lead time; while it doesn’t offer modifications and the SKU list is limited, it can certainly fill a void and keep projects rolling forward.
Getting into decking season, certain colors remain in short supply, so be sure to check with your salesperson if you are planning to purchase PVC or composite decking for this summer.
We continue to invest in our rental department, and the newest item is a Kubota mini-excavator. We’re still plagued by extended lead times on some other items, including a new lift that will be perfect for painting, siding installation, or even hanging Christmas lights – we’ll announce this new piece once we finally have it in hand!
Finally, we want to thank all of our amazing customers and clients for their patience as we continue to do our best to bring in the products they need. We know that the market conditions are extremely challenging to work around, and we will continue to do everything in our power to provide the best service, updates, and product sourcing to help you keep rolling.
As always this is data based on market conditions and my personal perspective. This is not meant to serve as any sort of investment advice.
Regardless of the long-term outlook, it’s a fresh change of pace to see several weeks of market relief.
Stay cool, and stay safe out there!
Danny Steiger│President & CEO
Lumber Traders Inc.
Angeles Millwork & Lumber Co.
Hartnagel Building Supply
As always, this e-mail content is not financial advice. Simply data to help you be better prepared. Our goal is to create more informed builders and homeowners to properly price and budget for future jobs and projects.
We will continue to update you on changes in the commodity market. Displayed above are the latest graphs.
Angeles Millwork and Hartnagel Building Supply see our customers as business partners, and their success is, in turn, ours. That is why every month, we will publish a commodity pricing chart on our Facebook page and in our monthly newsletter. The chart will represent a correlation of average pricing trends over the past year of Douglas Fir 2×4, Pressure Treated 2×4 Lumber, 7/16” OSB, and ½” CDX.