Tag Archives: Wood

CR: Lumber Prices up Sharply, Suppliers Scramble to Keep Up

Lumber Prices up Sharply, Suppliers Scramble to Keep Up

by Bill McBride on 3/21/2013 

From the WSJ: Amid Housing Recovery, Humble Plywood Shines Anew

Growing demand and tight supplies have pushed up plywood prices by 45% in the past year, and U.S. producers are scrambling to get back up to speed after slashing output of the basic construction material during the housing bust.

Georgia-Pacific, the largest U.S. producer of plywood, will announce Friday it plans to invest about $400 million over the next three years to boost softwood plywood and lumber capacity by 20%.

With demand rising, the composite price for structural panels, which includes plywood and other wood products, jumped to $511 per thousand square feet on March 15 this year, up 45% from $351 in mid-March a year ago, according to Random Lengths, a Eugene, Ore., wood-products market reporting service.

Lumcber PricesClick on graph for larger image in graph gallery.

This graph shows two measures of lumber prices (not plywood): 1) Framing Lumber from Random Lengths through last week (via NAHB), and 2) CME framing futures.

Lumber prices are now at 2004 and 2005 levels.  Demand is far below the levels during the housing bubble, but supply has fallen sharply too.

Read more at http://www.calculatedriskblog.com/2013/03/lumber-prices-up-sharply-suppliers.html#by52g5HXfx0IO3fT.99

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Rail Traffic for Lumber & Wood Products was up 5.7%

Weekly Rail traffic for Lumber & Wood Products was UP this week. Combined North America Rail Volume for the week is 6,158 UP by 5.7%. The four week moving average is 5,694 up by 7.9%. Week 4 cumulative total is 22,777 up by 7.9%.

 

This Graph shows the weekly average Carloads of Lumber & Wood Products.

Rail Traffic for Lumber & Wood Products was up 5.7% 2013 week 4

This graph shows the Percentage change in Year-Over-Year of Carloads of Lumber & Wood Products.

Rail Traffic for Lumber & Wood Products was up 5.7% 2013 week 4 yoy

From the Association American Railroads (AAR): AAR Reports Mixed Weekly Rail Traffic

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