Lumber Prices Rise Most Since 1993: Lumber Mills Expand

Lumber May 01, 2013 No Comments

LumberAnalysts forecast lumber prices will be 9.8% above the current  November contract and the highest for the period since 1996, as North American mills saw lumber at the fastest pace in 6 years after a recovering U.S. housing market, a beetle infestation in Canada, and increasing Chinese demand drove the biggest price surge in two decades.

About 55.5 billion of the industry’s standard board feet will be made this year, 6.7 percent more than in 2012, CIBC World Markets estimates. Futures will average $371 per 1,000 board feet on the Chicago Mercantile Exchange in the fourth quarter, according to the mean of nine analyst estimates compiled by Bloomberg.

The strength of U.S. housing surprised mill owners, who had curbed production because of the recession and beetle outbreak, said David Elstone, an analyst at ERA Forest Products Research in Gibsons, British Columbia. Canadian output fell to 23.7 billion board feet last year from a peak of almost 36 billion in 2004. Supply won’t reach that level any time soon, he said.

via Lumber Mills Expand as Prices Rise Most Since 1993: Commodities – Businessweek

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 Propurchaser.com.

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