Lumber Producers Hit Hard by Falling Board Prices?
Download MP3Lumber Price Decline and Its Impact
- Lumber prices have dropped so low that some mills are reducing production, making it less profitable to cut raw materials into lumber.
- This reduction, or "curtailment," may lead to an increase in lumber prices again.
Sawmills Cutting Production
- According to the Wall Street Journal, several sawmills are curtailing production to raise prices. Companies involved include Interfor, Canfor, and West Fraser Timber.
Curtailments in British Columbia & Oregon
- Both temporary and permanent curtailments have been announced in British Columbia.
- Oregon's Weyerhaeuser is also experiencing strikes among lumber producers.
Impact on the Housing Market
- These actions indicate that wood producers believe the downturn in single-family housing is a long-term trend, not just a temporary issue.
- To prevent further price drops, mills are slowing production.
Ripple Effect on the Industry
- The slowdown in lumber production is affecting other sectors:
- Labor market
- Shipping and truck transport
- Rail yards (fewer shipments)
Challenges for Builders
- Even though lumber prices have dropped, builders are still facing challenges in obtaining materials, which may continue as mills adjust their production.
Listener Interaction
- Share your experience: Are lumber prices in your area staying low, bouncing back, or causing shortages in specific materials?
