Lumber Prices

[vinny11950]

I didn't realize lumber prices had gone thru the roof until I looked at some plywood sheathing yesterday at the local HD. A sheet that had been $34 several months ago is now $56. Wow.

I think I will put off my project for now, until prices come back down.

This article below from Bloomberg says supply production shrunk while pandemic demand for home renovations has surged.

Lumber Frenzy Drives Up Home Prices as Suppliers Can’t Keep Up - Bloomberg

 

[blades]

yep a 2 dollar 2x4 is now anywhere from 8-11 dollars each. Pressure treated is almost unobtainable.

 

[Sawset]

2x4x8's were $2.80-3.20, now $6.50
Time to get that portable sawmill that's been on the wish list.
There is a bunch of scrap lumber out back that was just about to go on the burn pile - starting to rethink that.

 

[SpaceBus]

I'm glad I was able to secure my sawmill last summer before the market exploded.

 

[ABMax24]

Some of the supply shortages are caused by the softwood tariffs on Canadian Lumber, which currently stand at 9%, down from 27% in the early 2000's, which were imposed on Canadian mills to make US mills more competitive and keep US lumber prices higher. As a result many mills in Canada were shut down, and 10's of thousands lost their jobs.

Now the chickens have come home to roost, and the supply can't support the demand because the mills and workers to absorb this surge in demand no longer exist.

The only way to solve this pricing issue is reduce demand or increase supply. I believe we are heading into one of the biggest economic booms the world has every seen and doubt demand will do anything but grow, and it will take years to get more supply online. I don't see lumber pricing dropping significantly anytime soon.

 

[peakbagger]

2x4x8's were $2.80-3.20, now $6.50
Time to get that portable sawmill that's been on the wish list.
There is a bunch of scrap lumber out back that was just about to go on the burn pile - starting to rethink that.

I have seen posts on Forestry Forum that the portable sawmill firms are six months out on delivery. Used ones are selling for a premium.

 

[Sawset]

I have seen posts on Forestry Forum that the portable sawmill firms are six months out on delivery. Used ones are selling for a premium.

Of course they are ha ha - we are so screwed.

 

[SpaceBus]

I have seen posts on Forestry Forum that the portable sawmill firms are six months out on delivery. Used ones are selling for a premium.

When I paid for my Logosol I had to wait six weeks since it was still on the ship from Sweden, that was before things really spiraled out of control. It's been a while since I've been on forestry forum, I forgot my password this morning when I tried to log in! I wouldn't be surprised of that six month wait just keeps getting longer.

 

[peakbagger]

It all comes down to supply and demand. The supply was constrained due to Covid, mills shut down thinking the demand would go down and the demand is now higher than expected. There is inertia in the system, trees need to be cut, employees hired, machines starting up again. Anyone making plywood and 2x4s has a major carrot hanging out there to crank out lots of product to catch the high prices, add in a big hurricane season and that can screw things up. Right now supply is fixed so there is more demand than supply, at some point, the prices goes high enough that people not willing to pay the high prices drop out of the market. Give it a year or so and the supply will balance out with demand and eventually exceed it and then prices drop. There is large lumber mill near me and they were selling wood at discount early on in Covid as no one was buying and truckers were not available. My brother got a great deal on lumber last fall as the local firm picked it up at the sawmills yard and directly delivered it to his place.

Years ago there was a bad hurricane season and plywood prices were sky high, a friend worked with a sawmill and it was less cost to use 3/4" #2 grade T&G boards for sheathing rather than plywood. 1/2" plywood tends to telegraph 24" roof joists while boards do not telegraph. My friend switched from 16" OC to 24" on the roof trusses when he went to boards. Its more labor but we were working for beer. Contractors dont have that option.

 

[NickW]

Preaching to the choir... Excavation on our cabin starts next Tuesday. Original lumber quotes in early winter are now about 50% higher. Floor system from 3k to 5k, trusses from 9k to 14k. There's some changes included in the requotes so it's not all price increases, but the changes weren't very significant. Last I heard prices weren't projected to start dropping until 4th quarter.

 

[tlc1976]

I noticed this last year too. Won’t be re-siding my house anytime soon but it’s not something I really have to do.

I heard last year it was due to all these businesses building outdoor seating and dividers and things. I imagine people having so much more time on their hands, or businesses having some downtime with Covid so good time to remodel.

I remember about 15 years ago maybe there was a price surge and I heard it was due to sending all our wood to Iraq. Who knows. I just know that the days of the $1 econo-stud will probably never return.

Might be a good time to do some select cutting on my wooded acreage. It might be worth more than usual right now. People been telling me for years I should do that.

 

[NickW]

Remember OSB at $10-15 a sheet? In December it was $25 and now is $33 at the big box stores. Probably close to $40 at the local lumberyard who was $28 in December.

 

[ABMax24]

Remember OSB at $10-15 a sheet? In December it was $25 and now is $33 at the big box stores. Probably close to $40 at the local lumberyard who was $28 in December.

I remember when OSB was $5 a sheet, as a kid dad bought a lift to do a bunch of renovations on the house and was irked the price had went up to $5.25.

 

[FramerJ]

I frame 2000-4000 sf houses in Kansas City. The demand is mindblowing. I have no idea where all the people are coming from to buy houses. Or afford them. The builder I work for stopped taking new build contracts. Is going to specs (no contract) now because he doesnt want to get locked in on a price with lumber costs increasing weekly plus dealing with shortages. Our lumber company is a national company and they are running out of material-- siding, smart trim, LVLs, 2x6s, you name it. Its starting to hold up jobs. Theft is also becoming a huge problem. Another framing crew put 50 sheets of OSB up on the ceiling joists to deter any would be thieves only to come back the next day and it was gone. Thats crazy stuff.

 

[tlc1976]

I frame 2000-4000 sf houses in Kansas City. The demand is mindblowing. I have no idea where all the people are coming from to buy houses. Or afford them. The builder I work for stopped taking new build contracts. Is going to specs (no contract) now because he doesnt want to get locked in on a price with lumber costs increasing weekly plus dealing with shortages. Our lumber company is a national company and they are running out of material-- siding, smart trim, LVLs, 2x6s, you name it. Its starting to hold up jobs. Theft is also becoming a huge problem. Another framing crew put 50 sheets of OSB up on the ceiling joists to deter any would be thieves only to come back the next day and it was gone. Thats crazy stuff.

Because of it being accepted to work at home now, all you need is an internet connection. People can now work for high paying urban jobs and live in a low priced area. Double win, plus often a safer area to raise the kids.

 

[Prof]

I wanted to put in several raised garden beds. To the credit of the local guy who saws rough-cut hemlock, he hasn't raised his prices much if any. He, however, doesn't have any wood in stock and has a major backlog in orders. Fortunately for me, he had a guy stiff him on an order and my garden beds came together nicely. This got me to thinking that maybe I should consider turning some of my hemlocks into boards, so I ordered this:

Amazon product ASIN B01CNRL6TQ
I watched a few videos or guys using this product. Seems worth the price. I often feel like I waste $30-40 on a meal at a chain restaurant, so I figured what the heck--don't tell the wife and kids, but we aren't going out to eat this week!

 

[brenndatomu]

I remember when OSB was $5 a sheet

I remember when it was under $4...they could hardly give it away...back then nobody wanted "a bunch of wood chips glued together to make a board"
3/4" CDX plywood was $10 IIRC...its $55 now!

 

[ABMax24]

I remember when it was under $4...they could hardly give it away...back then nobody wanted "a bunch of wood chips glued together to make a board"
3/4" CDX plywood was $10 IIRC...its $55 now!

We live on a newer end of town and there are new houses being built about a block away, we were driving by some of the houses and couldn't figure out why the sheeting looked so weird, it was plywood instead of OSB. Outside of high end custom homes I can't ever remember seeing houses sheeted with plywood, everything here is done with OSB.

 

[Seasoned Oak]

Zip sheathing OSB $81

 

[brenndatomu]

everything here is done with OSB.

Yeah, now...this was back in the 80's...when OSB first came out

 

[SpaceBus]

I remember when it was under $4...they could hardly give it away...back then nobody wanted "a bunch of wood chips glued together to make a board"
3/4" CDX plywood was $10 IIRC...its $55 now!

Wow. We used a lot of CDX on this house and I still have a sheet of 1/2".

 

[peakbagger]

I will take cdx over OSB in a heartbeat. I have ripped down older OSB additions and the OSB was brittle.

 

[clancey]

Heck I remember 2x4"s going for about 2 bucks now they are almost 7 dollars a piece...clancey

 

[fbelec]

it may not be lumber but it is for projects or new houses. we are having trouble getting circuit breakers. doesn't matter the brand. i was told that the companies that make breakers can't get the plastic because of covid. they are way behind on their delivery's. i did a emergency panel change last week when i went into the supply house they were almost out of single pole 15 and 20 amp breakers. i was lucky i had some on the truck to add to the 6 allowed to every customer.
i was at lowes today and noticed that they had two 40 foot flat beds making a delivery of pressure treated lumber.

 

[Seasoned Oak]

it may not be lumber but it is for projects or new houses. we are having trouble getting circuit breakers. doesn't matter the brand. i was told that the companies that make breakers can't get the plastic because of covid. they are way behind on their delivery's.

Its all building materials and commodities. Recent price hikes have added an average of $24000 to the price of a new home.