{"id":80682,"date":"2021-05-04T10:47:11","date_gmt":"2021-05-04T10:47:11","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/us-lumber-prices-spiral-control-upcoming-period\/"},"modified":"2025-09-19T08:55:25","modified_gmt":"2025-09-19T08:55:25","slug":"us-lumber-prices-spiral-control-upcoming-period","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/us-lumber-prices-spiral-control-upcoming-period\/","title":{"rendered":"US lumber prices could spiral out of control in the upcoming period"},"content":{"rendered":"

Last week the price per thousand board feet of lumber soared to an all-time high of $1,188.\u00a0 Since the onset of the pandemic, lumber has shot up a whopping 232%.<\/em><\/p>\n

Home builders and DIYers don't want to hear this, but the ceiling could be higher\u2014maybe even a lot higher. On Monday,\u00a0the May futures contract price\u00a0per thousand board feet of two-by-fours jumped $48 to $1,420. That squeeze once\u00a0again triggered the circuit breakers\u00a0and caused lumber trading to halt for the day. Why would lumber yards and builders pay above market rates? Severe lumber scarcity has buyers on edge. They're buying the sky-high contracts in order to ensure they'll actually get the lumber they need for projects already under contract.<\/p>\n

The market is in trouble. It could spiral out of control in the next few months. The issue? Supply, which is already backlogged, simply can't catch up as demand continues to grow with the start of the home building and home renovation seasons.<\/p>\n

This supply and demand mismatch is largely a result of the pandemic. At the same time that state-mandated lockdowns caused mills to halt production, bored quarantining Americans were rushing to\u00a0Home Depot\u00a0and Lowe\u2019s to buy up materials for do-it-yourself projects. That caused lumber inventory to plummet. It only got worse from there: Recession-induced record-low interest rates caused a housing boom. In March,\u00a0new housing starts\u00a0hit their highest levels since 2006. Of course, new homes require a lot of lumber, thus exacerbating the shortage.<\/p>\n

On the supply side, lumber production is finally rebounding: Wood production\u00a0hit a 13-year high. But that can only do so much. Limited mill capacity combined with labor shortages, mean supply can't catch up to robust demand.<\/p>\n

Stinson Dean, CEO of Deacon Lumber, said\u00a0on Monday that soaring lumber futures contracts, including for months as far away as November, signal that lumber prices will be elevated for quite some time.<\/p>\n

For prices to correct, Jalbert says, demand will need to cool down\u2014something that is unlikely to occur until the home building and renovation seasons are over. Simply put, exuberant lumber prices aren't going anywhere in the next few months.<\/p>","protected":false},"excerpt":{"rendered":"

Last week the price per thousand board feet of lumber soared to an all-time high of $1,188.\u00a0 Since the onset of the pandemic, lumber has shot up a whopping 232%. Home builders and DIYers don’t want to hear this, but … 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":[3945,3252],"class_list":["post-80682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-lumber-prices","tag-us","topic-forestry","topic-industry-prices","topic-sawmilling","topic-wood-construction","area-north-america"],"acf":[],"yoast_head":"\nUS lumber prices could spiral out of control in the upcoming period - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/us-lumber-prices-spiral-control-upcoming-period\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US lumber prices could spiral out of control in the upcoming period - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Last week the price per thousand board feet of lumber soared to an all-time high of $1,188.\u00a0 Since the onset of the pandemic, lumber has shot up a whopping 232%. 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