{"id":75696,"date":"2018-05-30T13:49:09","date_gmt":"2018-05-30T13:49:09","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/trade-tariffs-and-tight-supply-make-lumber-prices-in-the-us-to-skyrocket\/"},"modified":"2025-09-19T08:48:08","modified_gmt":"2025-09-19T08:48:08","slug":"trade-tariffs-and-tight-supply-make-lumber-prices-in-the-us-to-skyrocket","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/trade-tariffs-and-tight-supply-make-lumber-prices-in-the-us-to-skyrocket\/","title":{"rendered":"Trade tariffs and tight supply make lumber prices in the US to skyrocket"},"content":{"rendered":"

The US lumber market is ready to boom, with\u00a0futures rising to another record on the 14th of May, due to various factors, as:\u00a0import tariffs, transport bottlenecks and strong housing demand.<\/em><\/p>\n

As Bloomberg reported, the\u00a0futures rose 1 percent to close at $619 per 1,000 board feet on the Chicago Board of Trade. They\u2019ve surged 66 percent in the past 12 months, which is\u00a0a bigger gain than any of the raw materials tracked by the Bloomberg Commodity Index.<\/p>\n

Moreover, the prices are most likely to keep on growing, as many US homebuyers confirmed.<\/p>\n

Still, the market is supported by:<\/p>\n

US tariffs<\/strong><\/p>\n

Lumber prices started to increase after the US imposed average imposed duties of 21% on Canadian softwood lumber shipments in November. While this move supports the US producers, it\u2019s bad news for domestic builders, who get more than a quarter of their needs from north of the border.<\/p>\n

For house construction in particular, the US simply doesn\u2019t have enough supply to meet demand. The National Association of Home Builders, an American industry group, estimates the tariffs will increase the\u00a0price\u00a0of an average single-family home built in 2018 by $1,360, Bloomberg reported.<\/p>\n

Transport Woes<\/strong><\/div>\n

Lumber producers such as\u00a0Canfor Corp.\u00a0and\u00a0West Fraser Timber Co. have\u00a0piles\u00a0of inventory stacked at their sawmills because of a lack of transport capacity. Canada is the biggest softwood lumber exporter to the US, and the disruption is contributing to price gains.<\/p>\n

Producers may work through the backlog this year -- Interfor Corp. said this month it plans to catch up on\u00a0shipments\u00a0in the second quarter.<\/p>\n

Tight Supplies<\/strong><\/p>\n

Single-family housing starts, which use about three times as much wood as multifamily construction, continue to increase, and orders are expected to rise now that spring building season has arrived.<\/p>\n

The US housing recovery and demand for residential repairs may lift lumber consumption in 2018, according to RISI. They also cite \"razor-thin\u201d inventories, owning to the duties and transportation delays, as well as a seasonal uptick in demand. The framing-lumber composite price probably will rise 20 percent in 2018 to a record.<\/p>","protected":false},"excerpt":{"rendered":"

The US lumber market is ready to boom, with\u00a0futures rising to another record on the 14th of May, due to various factors, as:\u00a0import tariffs, transport bottlenecks and strong housing demand. As Bloomberg reported, the\u00a0futures rose 1 percent to close at … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":58055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3663,3306,3815,3252],"class_list":["post-75696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-housing-starts","tag-lumber","tag-trade-tariffs","tag-us","topic-forestry","topic-industry-prices","topic-sawmilling","area-north-america"],"acf":[],"yoast_head":"\nTrade tariffs and tight supply make lumber prices in the US boom<\/title>\n<meta name=\"description\" content=\"The US lumber market is ready to boom, with\u00a0futures rising to another record on the 14th of May, due to various factors.\" 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