Expensive lumber makes a return amid supply cuts, labour shortages
BNN Bloomberg
High lumber prices are back, even as the industry steps into what is normally a seasonal lull.
High lumber prices are back, even as the industry steps into what is normally a seasonal lull.
Prices are climbing amid tight supplies and a pickup in homebuilding. Western Canada is seeing reduced output and the U.S. south is grappling with labor shortages. The U.S. is also expected to double duties on a common Canadian wood next month, adding to costs.
The rise signals that homebuyers will face elevated prices for longer. On Monday, lumber futures settled at US$752.90 per 1,000 board feet, about double the pre-pandemic five-year average around US$356.
Wood prices have been volatile, whipsawing since the pandemic began. They touched record highs amid a COVID-19 inspired home-building boom, then collapsed because sawmills ramped up production and the high prices stifled retail demand. Now, the market is shooting up again.
The cost of logs have been soaring in British Columbia, a key producer of softwood lumber used in homebuilding. Several sawmills in the Canadian province curtailed production as their costs exceeded the sales prices.
