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
Elizabeth Warren is probably coming up with a speech to take on Big Lumber for their greed.
"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.
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.
Brandon taking care of folks in the lumber business.
The unfinished upstairs room will have to wait a bit longer.....
400 square feet with a partial floored area that is somewhat usable.
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.
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.
Don’t forget. It’s transitory.
UFPI stock
6 foot long 2 inch wide cedar pickets = three friggen dollars apiece.
Agreed! We used to be middle. That’s changing way fast. But, where ya gonna go?
people that already have construction loans and the costs hike...
ouch
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).
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.
Perfect storm.
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.
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
Canadian trucking shortage
How did that happen?
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