Home Forum Research What’s the deal with prices these days? Reply To: What’s the deal with prices these days?

Scot Griffin
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Of the additional $1B in revenue Q-o-Q, most of that is due to 2 months of revenue from the acquired Norbord business. “Only” $300M is from increasing lumber prices, and it looks like all of the increase was due to mark up (unit lumber sales must have been about identical Q-o-Q because the costs associated with producing and selling them was almost identical). See pages 15-16 of the Q1 report you linked.

So,I am with Mark Blyth in the belief this is a short term shock until supply catches up with demand, and there’s a lot of M&A happening right now, so I see the continuation of the breadth regime (of which West Fraser/Norbord is an example).