Lumber prices poised to rise as U.S. housing recovers

Lumber Sep 13, 2012 No Comments

House frameNorth American lumber prices are set to increase further in the coming couple of years as the U.S. housing market continues to strengthen from years of weakness, a new CIBC report predicts.

Spot prices for Western softwood lumber made from spruce, pine and fir trees have steadily increased this year, rising 24 per cent since January to $310 (U.S.) per 1,000 board feet in August.

That’s nearly 41-per-cent higher than the $220 price set two years ago, when the U.S. house-building industry was still suffering from years of overheated construction activity and a collapse in the mortgage lending industry.

Analyst Mark Kennedy said the futures market is suggesting lumber prices will soften over the next two to three months before strengthening early next year as the fundamentals of the U.S. market improve despite recent mixed signals.

via Lumber prices poised to rise as U.S. housing recovers.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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