Lumber and building materials 7/12

Reflecting sluggish demand for timber and building materials, timber prices fell below 440 dollars per 1,000 board feet in July, and recorded a low for the first time in a year and a half.

In Canada, the number of building permits fell by 12.2% in May, indicating a drastic slowdown in construction activity.

Meanwhile, in the United States, the number of pending housing sales declined sharply by 2.1% in May, and contrary to expectations of a 2.5% increase, a sharp decline of 7.7% continued from April.

Furthermore, the number of newly built single-family housing sales in the US fell 11.3% from the previous month to an annual rate of 0.619 million cases, and it was a drastic drop since 2022/9.

Furthermore, the number of building permits in the US fell 2.8% to 1.399 million, and although it was revised upward from the initial forecast, it was the lowest level since 2020/6.

These statistics reflect broader economic uncertainties and potential impacts on future construction and housing activities, and highlight the mounting challenges in the housing markets of major countries.

According to global macro models and analysts' forecasts, timber is expected to be traded at 442.14 US dollars/1000 board feet by the end of this quarter. It is expected to trade at 417.81 US dollars after 12 months.