Lumber prices above $1000 per thousand board feet since June

Lumber prices grew by 5% to $1,024 per thousand board feet for the first time since June.
In May, prices reached $1,700 per thousand board feet but later fell short by 74% and reached $452, and again regained by 127% to the current level.
Lumber prices have been volatile since the start of Covid and in summer and spring, the cash price of lumber from sawmills soared to $1,600 per mbf from $400 mbf, driven by low production and capacity of the mill coupled with high demand from consumers to renovate their homes.
The high price environment caused the mills to increase production, but non-essential domestic prices and curbing reforms led to a sharp drop in demand, bringing lumber prices to a modest $500 mbf.
The price surge is also due to Canadian floods that hindered the operations of one of the biggest lumber producers, West Fraser.
Additionally, an 18% increase in tariffs on lumber exports by the US Department of Commerce added to the price jump.
Low mortgage rates and millennial residents who needed new homes after graduation, continued to drive home demand and raised lumber prices.

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