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/