Lumber Prices Continue to Fall Amidst Economic Headwinds
High Interest Rates, Macroeconomic Concerns, and Geopolitical Tensions Weigh on Industry
WEB Lumber prices declined in Q1 2023 with an average price of $780, as interest rates, macroeconomic concerns, and geopolitical tensions dampened demand.
GreenFirst Forest Products, a publicly-listed TSX GFP forest products company, has attributed the decline to high interest rates and concerns over macroeconomic issues. The company operates seven sawmills and one planer mill in Canada and the United States, and has been experiencing softening lumber demand due to headwinds in the housing market and economy as a whole.
GreenFirst is monitoring the situation closely and taking steps to manage costs and maintain profitability. The company has implemented a cost-reduction plan and is evaluating options to reduce capital expenditures. GreenFirst is also exploring opportunities to expand its product offerings and markets to mitigate the impact of the current market conditions.
The decline in lumber prices is expected to continue in the coming months as high interest rates and macroeconomic concerns continue to affect the housing market and overall economy. GreenFirst will continue to monitor the situation and adjust its operations accordingly.
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