Lumber prices down 8.4% as inflation destroys home renovation projects

Lumber futures fell by 8.4% to $870 a 1,000 board feet in Chicago on Monday, extending a slump to 30% since the start of March.
The DIY sector is eroding because inflation is increasing and buyers are just walking away and refusing to pay the high prices.
The DIY sector is the largest lumber market segment, which accounts for 40% of consumption, and big-box retailers such as Home Depot Inc. and Lowe’s Cos. represent half of the segment, with the rest coming from smaller retailers and contractor yards.
Lumber has been volatile throughout the COVID-19 pandemic, with a recent rise in March due to lingering supply and shipment woes from last year’s floods in B.C.
Inventory is also stacking up as transportation jams have left many of North America’s biggest producers with stockpiles at sawmills due to a lack of rail cars and damaged roads, as a result, producers are sitting on a lot of inventory because they can’t ship the stuff.
The backlog is critical in Western Canada. Some lumber companies cut back on operations in which Canfor Corp. cut operating schedules at its sawmills in B.C. starting April 4 to address unsustainable inventory levels. West Fraser Timber Co., the world’s largest lumber producer, shortened output in early February due to the inability to ship products.

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