Robust Demand Seen Driving Lumber Prices in North America

SEATTLE (Scrap Monster): The robust demand from end-uses of lumber products resulted in high lumber prices. The high demand levels led to shortage of product on hand to meet the demand. The inventory levels continued to remain lower, according to Madison’s Lumber Reporter.

Normally, during this part of the year, the lumber demand takes momentum after the slow Holiday season. However, the demand, which touched its peak in end-2020, continued to extend the strong momentum into the initial weeks of the New Year. The lumber prices did witness a marginal pullback by mid-January. However, the prices have again resumed its upward trajectory by end of the month. The floor level prices are reportedly at unprecedented higher levels, as they have not made significant decline in Q4 last year.

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The prices of Western SPF commodities extended their upward trend, although demand dropped from their highest level. The week ending January 29th saw Western S-P-F KD 2x4 #2&Btr prices surge higher by 5% from the prior week. When compared with the prior week, the prices skyrocketed by nearly 130%.

SYP East KD 2x4 R/L #2&Btr witnessed the largest year-on-year surge of 193%, followed by WSPF KD 2x4 PET Stud which rose by 159% over the previous year.