Lumber Prices to Remain at Elevated Levels in 2022: NAHB

SEATTLE (Scrap Monster): The National Association of Home Builders (NAHB) of the United States, in a letter addressed to the President, has alerted on the volatile lumber prices throughout the current year. Furthermore, it noted that the prices are most likely to sustain the current high levels during the next year as well.

The home building industry was in the grips of sky-high lumber prices during the beginning of 2021. While the lumber prices have witnessed drastic fall from a few months ago, the cash prices for the material have climbed to more than 27% over the last month. What is more worrying is that the forecasting trends suggest further increase in the near future. Anticipated mill curtailments may likely result in massive lumber price hike this fall and next spring, the letter noted.

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The persistent supply chain issues and resultant supply delays have lifted home prices by almost one-fifth over the previous one-year period. The Commerce Department decision on conclusion of administrative review of tariffs on softwood lumber imports from Canada is feared to further exacerbate the issue. As per projections, the tariffs are likely to double from current level.

NAHB called for urgent government intervention in ending softwood lumber tariffs once and for all, for the benefit of the industry.