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Lumber Prices Have Never Been This High Ahead Of Spring Building Season
Zubu Brothers ^ | 2-19-2022

Posted on 02/19/2022 2:33:15 PM PST by blam

The spring construction season is about to begin as homeowners face some of the highest lumber prices ever for this time of year.

March lumber futures in Chicago closed at $1,270 per 1,000 board ft. in Chicago on Friday, up more than 36% since the beginning of the month due to tighter Canadian supplies ahead of the spring building season.

Bloomberg reports the increase in lumber prices comes as Canfor Corporation, the world’s third-largest integrated forest products company based in Vancouver, British Columbia, announced a supply cut of 150 million board feet of production due to mountain pine beetle infestation that has devastated trees. Simultaneously, West Fraser Timber Co, the world’s largest timber company, reported port congestion and truck and rail car shortage make it challenging to transport lumber to buyers.

“In Western Canada, these transportation challenges are really unprecedented in both scale and duration,” West Fraser Chief Executive Officer Ray Ferris told investors on an earnings call last Wednesday.

Over three decades, lumber prices have never been higher for this time of year as the first and third-largest timber companies report supply woes.

Ferris said lumber and plywood shipments fell 20% year-over-year, and pulp shipments plunged 30% in January. He also said shipping “products in a timely manner remains challenged,” warning the company might be forced to take “unscheduled downtime” due to the transportation problems.

Tight lumber supplies ahead of the spring construction season in North America are likely to add more housing inflation to not just prospective homebuyers but also homeowners who want to remodel their kitchens or bathrooms.

Add lumber to the list of the “shortage of everything,” as Goldman Sachs’ head commodity strategist and one of the closest-followed analysts on Wall Street, Jeffery Currie told Bloomberg TV last week, “We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of


TOPICS: Society
KEYWORDS: inflationo; lumber; prices; shortages
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1 posted on 02/19/2022 2:33:15 PM PST by blam
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To: blam

Elizabeth Warren is probably coming up with a speech to take on Big Lumber for their greed.


2 posted on 02/19/2022 2:35:30 PM PST by cdcdawg (Everyone who disagrees with me is a Qtard blogger!!!!)
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To: Restless
"I got an estimate last March for a bathroom remodel - $5200. Couldn’t get it scheduled. Same contractor now wants $6700. I’m going to get it done before the cost goes up even more. Don’t even ask me about my heating bills this winter."

"Tight lumber supplies ahead of the spring construction season in North America are likely to add more housing inflation to not just prospective homebuyers but also homeowners who want to remodel their kitchens or bathrooms. "

Thought about you when I read that.

3 posted on 02/19/2022 2:35:54 PM PST by blam
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To: cdcdawg

Elizabeth Warren is probably coming up with a speech to “take on Big Lumber” for their greed.


Considering the looks of her husband, I’d say that’s a distinct possibility.


4 posted on 02/19/2022 2:38:20 PM PST by nesnah (Infringe - act so as to limit or undermine [something]; encroach on)
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To: blam

Brandon taking care of folks in the lumber business.


5 posted on 02/19/2022 2:38:21 PM PST by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? 😕)
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To: blam

The unfinished upstairs room will have to wait a bit longer.....

400 square feet with a partial floored area that is somewhat usable.


6 posted on 02/19/2022 2:39:01 PM PST by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: rktman
The Cost Of Living In The US Is Rising To Absolutely Absurd Levels
7 posted on 02/19/2022 2:39:34 PM PST by blam
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To: blam

I recycle as much as I can. Never install a picket fence using new lumber. Just cut up the old stuff. Besides the 2 x 4’s are softer. I’m surprised there’s not more of those used lumber yards. Storage costs don’t help.


8 posted on 02/19/2022 2:40:39 PM PST by DIRTYSECRET
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To: blam

The is a saying in the futures markets:

“The cure for high prices is high prices”

Note there is nothing in that about it being a quick cure, just that they are a cure.


9 posted on 02/19/2022 2:45:41 PM PST by BiglyCommentary
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To: blam

Don’t forget. It’s transitory.


10 posted on 02/19/2022 2:50:29 PM PST by HighSierra5 (The only way you know a commie is lying is when they open their pieholes.p)
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To: blam

UFPI stock


11 posted on 02/19/2022 2:51:42 PM PST by Oystir
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To: blam

6 foot long 2 inch wide cedar pickets = three friggen dollars apiece.


12 posted on 02/19/2022 2:53:12 PM PST by skeeter
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To: blam

Agreed! We used to be middle. That’s changing way fast. But, where ya gonna go?


13 posted on 02/19/2022 2:58:20 PM PST by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this? 😕)
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To: blam

people that already have construction loans and the costs hike...

ouch


14 posted on 02/19/2022 3:06:22 PM PST by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. #FJB)
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To: wally_bert

The local news last night reported that the price of a new build home is UP $18,000 from last year on the price of wood alone (never mind other building materials costs).


15 posted on 02/19/2022 3:07:29 PM PST by llevrok (Pronouns: Me/myself/& I)
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To: blam

Put up a platform for a 8X14 shed 18 months ago for a little over $1k..all treated 6x6s, 2X6s and 3/4 plywood and hardware. I repriced from my original receipt a year ago (6 mos. after build). The price was $1,420. Just repriced this morning cuz I was curious..$1,845.


16 posted on 02/19/2022 3:11:54 PM PST by ratzoe
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To: blam

Perfect storm.


17 posted on 02/19/2022 3:14:17 PM PST by Freedom_Is_Not_Free (America -- July 4, 1776 to November 3, 2020 -- R.I.P.)
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To: blam

Close to one million people have entered the USA looking to do construction work in the Covid era.

Joe Biden has the southern border wide open.

Don’t overpay for construction work.


18 posted on 02/19/2022 3:23:12 PM PST by Brian Griffin
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To: llevrok

Ouch.

Between materials and contractors to fit out the space as I would be in the area of 18k at the rate things are going.

I am not a carpenter, drywall, AC guy, or electrician. Small things I can handle though and no problem chipping in labor.

During school I touched on shop class but no real industrial arts like this:

https://www.youtube.com/watch?v=tUPXVtFcl5U


19 posted on 02/19/2022 3:26:19 PM PST by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: blam

Canadian trucking shortage

How did that happen?


20 posted on 02/19/2022 3:27:48 PM PST by Brian Griffin
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