Lumber Prices On The Rise as Supply Shortages Exacerbate

SEATTLE (Scrap Monster): The lumber prices are on the rise, primarily on account of supply shortages from the main supply sources- the British Columbia (B.C) and the U.S. South region. The pickup in residential construction projects coupled with fears of hike in tariffs on Canadian softwood by the U.S. administration too have led to the rally in lumber prices.

As per reports, the sawmills in B.C. region curtailed production due to high cost of logs. Incidentally, the government-adjusted cost of logs in early-October has nearly quadrupled, compared with the same period a year before. The lumber supply shortage in the market has been further aggravated by ongoing labour disputes and severe shortage of workers at sawmills.

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The higher input costs have been mostly passed on to homebuyers. The average price of homes in the U.S. has surged higher by as much as $40,000, mainly triggered by sky-high lumber prices. Jerry Howard, CEO, National Association of Home Builders (NAHB) noted that prices of homes are likely to stay higher. The rise in price is feared to sustain through the initial quarter of 2022, with markets likely to face high volatility in prices, analysts said.