TD sees upswing for lumber in late 2013 with U.S. recovery and Chinese demand

Posted by Rumin Mann
September 29th, 2011

There is a light at the end of the tunnel for the Canadian lumber industry, TD Bank says in a report, suggesting that growing demand from China and a recovery in the U.S. homebuilding market will come late in 2013.

TD economist Leslie Preston said patience will pay off for the sector that is suffering with prices still 36 per cent below the previous cyclical highs, despite gains in other commodities.

“Moreover, after considerable restructuring over the past ten years, the lumber sector is leaner and more competitive,” TD economist Leslie Preston wrote in a report Thursday.

“We expect further capacity reductions this year, setting the stage for an upswing in prices once U.S. demand starts coming back on stream.”

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