CNBC's Kyle Little, chief operating office at Sherwood Lumber in New York, said that the recent drop in lumber prices had rekindled the demand after a huge run-up earlier this year, which made it difficult for many people to afford building projects.The industry veteran and ex-lamb trader, said that there has been renewed interest over the past three weeks. "Our renewed interest now turns into orders and people placing business here in the second half this year, most notably in commercial segments and multifamily units."Little made these comments on Thursday as lumber prices fell to $480.40 per 1,000 board feet. This is the lowest level since July 8, 2020 when lumber prices were as low as $465 for every thousand board feet. After falling by over 9%, lumber prices are now on track to suffer their 13th consecutive weekly decline.The lumber futures market plunged 40% in June, making it the worst month since 1978. This happened because Americans started to move away from their homes following pandemic shutdowns and instead began to pursue renovation and building projects. After suffering their pandemic lows in April 2020, Lumber prices hit an all-time high in May at $1,670.50 per 1,000 board feet.He said that current lumber prices are "absolutely sensible" referring to the industry's recovery after the pandemic-driven selloffs in the first quarter and second quarter of 2020 which were followed up by a significant increase in costs. CNBC reported that lumber prices were above $1,100 per 1,000 board feet in June. Little said that he recommends people wait before starting their building projects. He also predicts further relief in wood price.Little stated that the lumber market was now in an "equilibrium stage or search for equilibrium" on Thursday.Little stated that the support level following the bottom of the trend pre-Covid has been very bullish. It's also one that would make a lot more lumber industry workers feel comfortable rebuilding inventory for the second half year, given the projected demand.
