Hang On and Enjoy the Ride

After four years of deep industry recession, there are signs that a rebound is in sight. Lumber prices increased steadily during Ql, up over 20%. Pulp and newsprint prices are also up significantly, explaining the black ink among integrated forestry companies this past quarter. Single-family housing starts were also much higher than expected this spring. The increased numbers were in part due to the expiry of the U.S. home buyers tax credit as consumers tried to beat the deadline, but that may also mean that without a tax credit in the offing, the rest of 20 1 0 could be a bumpy ride. Still the stage is set for an accelerating recovery in 201 1, with some predicting starts likely to top …