Why did lumber prices increase so much in the last 18 months?

[Lee in Texas]

I think Covid is a bit of a red herring. Lumber prices were high during Iraq and Afghanistan campaigns. They were using insane amounts of 2x, OSB, and plywood. In Afghanistan, I was in an 8-soldier wood building. One big, empty room. We drove around and stole plywood to make individual rooms. We never heard a peep about it.

 

[bozo699]

In our area the number of mills dwindled so there is no competition to obtain wood. The loser is the land owner. Land owners are not seeing any of this profit.

That is correct!..
Wayne

 

[bozo699]

Another big reason is the the US government has continued to place tariffs and taxes on Canadian lumber coming into the US. Canada is a huge supplier but the US has a history of placing tariffs against our lumber exports. Right now it is approaching 20% that the US consumers are forced to pay.

That’s a good thing!…. We don’t want any Canadian lumber here!. It’s what took out 1000’s of mills in this country in the late 99’s into the 2000’s we have all the timber we need right here!…
Wayne

 

[Steveb]

Canada supplies about 35 - 40% of the US market because the US can't produce enough lumber internally. When the US put on the tariffs, all the US producers did was jack up their prices!!

 

[284winner]

Repeating the subject, anyone have thought?
MarkTrew

Supply and demand. Demand is the same but supply is much lower causing prices to grow. Inflation, minimum wage increase and fuel costs also have a negative effect.

 

[GetReal]

Its Trumps fault, of course.

 

[Twicepop]

They did this, get ready..............BECAUSE THEY CAN.

 

[JFrank]

IDK
My 1x6 t&g pine which last summer floated at $2.50 lf came down more than a bit, I was able to buy 1300 lf at $1.08 per
Hard to bark at that.

 

[Scalloper]

I was speaking to a relative last week thats a wood cutter. He said his prices for logs today are the same as they were 7 years ago.

 

[Park ranger]

I was speaking to a relative last week thats a wood cutter. He said his prices for logs today are the same as they were 7 years ago.

Yes, the market on the stump hasn’t increased. Black cherry is down to white oak levels in my area, like $350 per thousand board feet. I was selling oak for that in 2002, but cherry and hard maple was around $600 per mBF.

 

[284winner]

44.00 today for 7/16 OSB...WTF. Much worse than the height of Covid or even the worse Hurricane season combined.

 

[drop_point]

My wife's uncle owns the largest lumber mill in the area. He can't find help to keep the place running at capacity.

 

[338 dude]

I'll take Thailand over China. I haven't forgotten about the Chinese drywall problems.

I remember those problems I’ve been in the drywall trade for over 31 years

 

[dellet]

Because some millennial figured out what our parents never could?

“Money doesn’t grow on trees, ya no” + “do you think I’m made of money?” = Trees are made of money.

Probably why ducks are made of wood.

 

[Will Henry]

Commodities trading and market manipulation are two factors. The third factor is the willingness of the consumer to buy, using credit, at the current prices. Of course, the governments have led the way when it comes to deficit spending so it should be no surprise. WH

 

[joshb]

There’s a new development going in, down the road. The lots sold out in record time last year. Two houses were started, then they stopped. Word is they ran out of money.

 

[Enosiophobia]

My take on this is that interest rates have been at historic lows. Builders, and homeowners calculated the increased material costs as they relate to their new home, and figured they're still ahead in the long run. I'm sure material suppliers did the same.

I recently left a local home builder digging about 80 houses a year. Couldn't keep up with demand. I opened my own interior trim business. Plenty of work, more money, less headaches.