Lumber Prices Boosted by Consistently Strong Demand

SEATTLE (Scrap Monster): The lumber prices have been rising for the past few weeks, mainly driven by robust demand for construction materials. The sustained rise in U.S. housing starts and home sales and price data may continue to push lumber prices during the remainder of the current year.

According to Madison’s Lumber Reporter, the price of Western S-P-F 2×4 #2&Btr KD (RL) touched $540 mfbm during the last week of September this year, significantly higher by almost 6%, compared with the prices during the prior week. The jump in prices was partly attributed to logistics disruptions which affected shipment of products from sawmills in the North to the Southern markets.

ALSO READ: Global Softwood Fiber Costs Surged Significantly in Q2 This Year

However, the prices reported significant downfall over the year. When compared with the price of $960 mfbm during the last week of September in 2020, it reported a decline by almost 44%. On the contrary, the prices surged higher by 44% when compared with the price levels two years ago.

The order files of Western SPF lumber producers in Canada extended into mid or even late-October, signalling consistently strong demand for the material. Although sales of all grades remained strong, the High Line products recorded strongest performance. The producers of lumber and stud in Eastern Canada witnessed rigorous demand.