The FTR Experts were posed with the question, "Why are forest products and scrap metals diverging?"
Following The 2021 Outlook, the final session of the FTR Engage virtual speaking series, the FTR Experts sat down to answer listener questions beyond what was covered during the Q&A within the presentation.
- The forest products sector wants product quickly, creating a preference for truck freight. Modal shift in forest is particularly for lumber and wood.
- There are underly economic drivers, record-low mortgage rates, and people wanting extra space in their home for work and school.
- Metal scrap is seeing strong demand to bring goods to market and use scrap in the manufacturing process. Metal scrap is an outlier and a source of strength.
- Scrap metal movements are a good underlying indicator of the health of manufacturing.
- Scrap prices being up also incentivizes scrapping of cars.