{"id":81910,"date":"2022-02-28T10:37:27","date_gmt":"2022-02-28T10:37:27","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/lumber-price-bubble\/"},"modified":"2025-09-19T08:57:02","modified_gmt":"2025-09-19T08:57:02","slug":"lumber-price-bubble","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/lumber-price-bubble\/","title":{"rendered":"Are we in a lumber price bubble again?"},"content":{"rendered":"
\n

When\u00a0the lumber bubble burst in the spring of 2021, it was expected to be the end of the mania. But\u00a0here we go again: As of Friday, the cash market price of framing lumber hit an eight-month high of $1,271 per thousand board feet. That marks a 227% uptick since August, when it cost\u00a0$389 per thousand board feet, and it isn\u2019t too far off from the all-time high of\u00a0$1,515 per thousand board feet\u00a0set in May 2021.<\/p>\n

It\u2019s understandable that some do-it-yourselfers and homebuilders are having 2021 lumber bubble d\u00e9j\u00e0 vu. In fact, many industry insiders say\u00a0we are currently amid another run on lumber prices\u00a0that is once again likely to end in a price correction.<\/p>\n

The first run was created by pandemic lockdowns that limited production just as\u00a0remote working set off a home renovation boom\u00a0and recession-induced low mortgage rates spurred\u00a0more demand for homebuilding. But the dynamics driving this latest run on lumber prices is very different.<\/p>\n

The latest pricing surge is far less due to a shortage of lumber production, but instead a crisis of shipping and logistics. The acute rail and trucking disruptions that currently plague the market were initially kicked off by the unprecedented flooding and mudslides in British Columbia in November, and then further exacerbated by the labor disruptions from Omicron and winter weather further bogging down critical rail lines from Canada to the U.S.<\/p>\n

Shipments are starting to increase again in British Columbia now that the\u00a0mudslides and flooding caused by record rainfall in November\u00a0are in the rearview mirror. However, there are still delays getting lumber shipments out of the\u00a0Port of Vancouver.<\/p>\n

A number of mills in British Columbia have recently announced production curtailments, not because they are not making money, but they are running out of room to store finished inventory as production outpaces shipping throughput. That disconnect between retailer and wholesaler needs, and what can actually ship to market, is ultimately fueling buyer panic that is helping prices rally higher.<\/p>\n

Industry insiders say a price correction could come once warmer weather allows railcars in British Columbia\u2014the epicenter of North American lumber\u2014to run faster and more frequently. That will allow more supply to hit the market, and should reduce the panic buying by homebuilders and lumberyards alike.<\/p>\n

\u201cWith last year\u2019s price spike, the current amount of committed projects, and the ever expanding transportation delays, the path has been cleared to retest the record highs of 2021,\u201d said Todd London, SVP of sales for Sherwood Lumber Corp. \u201cAfter this seasonal push, things look ominous. Peak demand is behind us, and supply is steadily increasing.\u201d<\/p>\n<\/div>\n

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