Lumber Prices Hit 2 Year High – Here’s Why

 

LBM Journal shares the National Association of Home Builders (NAHB) primary drivers of the price increase:

  • Mills closed in the spring due to stay-at-home and social distancing measures enacted by state and local governments.
  • When prices fell between March and April as a result of the COVID-19 pandemic, mills projected that housing would be adversely affected and therefore anticipated a large drop in demand. Accordingly, mills that remained operational substantially decreased capacity utilization.
  • Producers did not anticipate the massive uptick in demand from do-it-yourselfers (DIY) and big box retailers during the pandemic.
  • Housing weathered the storm much better than most anticipated.
  • DIY demand has not abated much as states reopen and construction demand has far surpassed lumber mills’ projections.

Read the full article here:   https://lbmjournal.com/lumber-prices-at-2-year-high/