{"id":80899,"date":"2021-06-22T06:08:33","date_gmt":"2021-06-22T06:08:33","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/us-lumber-enters-bear-market-prices-20-peak\/"},"modified":"2025-09-19T08:55:42","modified_gmt":"2025-09-19T08:55:42","slug":"us-lumber-enters-bear-market-prices-20-peak","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/us-lumber-enters-bear-market-prices-20-peak\/","title":{"rendered":"US lumber enters a bear market with prices down 20% from peak"},"content":{"rendered":"

US lumber prices are falling\u2014fast.<\/em><\/p>\n

On Tuesday, the price per thousand board feet fell $114 to $1,210, according to industry trade publication Fastmarkets Random Lengths. This comes after its record $122 decline last week. In all, the \"cash\" price of lumber is down 20%\u2014the threshold in the securities world for a bear market\u2014since the $1,515 all-time high set on May 28.<\/p>\n

What's driving the dip? Homebuilders and DIYers alike are finally balking at the\u00a0exorbitant price of lumber. Indeed,\u00a0new home construction\u00a0in May is down 8.8% from the 14-year high set in March. And\u00a0home-improvement sales\u00a0are down 8.1% in May compared with the all-time peak set in March. Those dips coincided with the historic surge in lumber prices that occurred this spring. In addition, on the supply side, sawmills and loggers are incentivized by record prices to churn out more lumber: In April,\u00a0U.S. wood production hit its own 13-year high. Rising supply and weakening demand is a perfect recipe for a price correction.<\/div>\n

\"What we\u2019re seeing right now is that of all the factors that contributed to the record run, those trends have eased or turned over and are incrementally contributing to the drops,\" Shawn Church, editor of Fastmarkets Random Lengths says. \"We certainly have heard that projects have been put on hold because of tight supplies and record wood products prices.\"<\/p>\n

\"Home centers across the country forecasted greater demand from the DIY sector this year based on the frenzied pace we saw over the past 12 months, and as consumers move on to lockdown-free activity such as travel and leisure, we've seen a drawdown in that home center takeaway loosen up supply in the marketplace, which has contributed to the easing of pricing overall,\"\u00a0Nils Martinsson, a commodity lumber trader at Sherwood Lumber says.<\/p>\n

As the cash price of lumber (what sawmills charge distributors and wholesalers) continues its slide, it should, industry insiders tell\u00a0Fortune<\/em>, begin to be reflected in the aisles of big boxes like\u00a0Home Depot\u00a0and Lowe\u2019s. So DIYers along with homebuilders are due for some price relief.<\/p>\n

And even more drops could be looming. Preceding this correction on the wholesale side,\u00a0lumber futures\u00a0peaked on May 10 at over $1,700 for July delivery contracts. As of Tuesday close, July contracts trade at $1,010, while September contracts are $907. That suggests traders believe the wholesale and retail price will continue to descend.<\/p>\n

While the lumber cash price is falling, it still has a long way to go: Prices are up 239% from last spring. Prior to this lumber crunch, prices fluctuated between $350 to $500 per thousand board feet. Simply put: Even with this price relief, your deck or home remodel is still going to cost a lot more than if you did it pre-pandemic.<\/p>\n

One challenge? Even though homebuilding and DIY are slowing a bit, they're still red hot.\u00a0New home construction\u00a0in May is up 50% from May 2020\u2014amid the spring 2020 shutdowns\u2014and up 21% from May 2019.<\/p>","protected":false},"excerpt":{"rendered":"

US lumber prices are falling\u2014fast. On Tuesday, the price per thousand board feet fell $114 to $1,210, according to industry trade publication Fastmarkets Random Lengths. This comes after its record $122 decline last week. In all, the “cash” price of … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59390,"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":[3306,3286,3252],"class_list":["post-80899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-lumber","tag-prices","tag-us","topic-forestry","topic-industry-prices","topic-sawmilling","topic-wood-construction","area-north-america"],"acf":[],"yoast_head":"\nUS lumber enters a bear market with prices down 20% from peak - 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-enters-bear-market-prices-20-peak\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US lumber enters a bear market with prices down 20% from peak - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"US lumber prices are falling\u2014fast. 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