US lumber prices to recover in 2009

08/27/07 - UBS

NEW YORK, August 27 (newratings.com) - Analysts at UBS say that despite a recent rise in lumber prices, the outlook for a recovery remains weak until 2009.

In a research note published this morning, the analysts mention that prices for lumber, OSB, and plywood rose sequentially by 1%, 17.9% and 5.1%, respectively, in 3Q07. Louisiana-Pacific has decided to stop operations at two of its plants in Silsbee and Hayward, citing market conditions, the analysts say. With the decline in activity in the housing market, due to the sub-prime crisis, markets may have to wait until 2009 for prices to recover, UBS adds.