The market has been strong for a while now. To build on that, I'd say that we try to operate our assets to their maximum capacity, because that's the more efficient way to do it.
However, to the discussion and your questions from a bit earlier, the price of lumber is volatile. It adjusts very quickly. Lumber is a very liquid market. It's a very deep market that allows for almost immediate price discovery, but there are three key things that I think we should keep in mind.
The first is that a supply gap was created after the pandemic started. This goes to your question. A number of producers reduced their production because we all thought that we were going back to the days of 2008-09. There was a reduction in production capacity. It took a long time for that supply gap to close. That drove up prices.
The second thing is—and this is part of what we're living through now—there are tremendous logistic constraints. I'm sure you've heard about this. The B.C. floods, the current significant jamming of rails and railcars, and the lack of truckers are causing some significant flow issues that are limiting supply distribution.
The third thing is that in the last couple of years, the cost of fibre in Canada has been increasing. From our perspective, duties play into that factor, because they raise the cost of benchmark production.