Lumber Prices

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peakbagger

Minister of Fire
Jul 11, 2008
6,239
Northern NH
One of many marketing techniques used by online sellers is"surge" pricing. Its easy to program in an algorithm to raise the price when the demand goes up. Uber gets pounded on it frequently. Some call it automated gouging but its supply and demand. Same with wood, not enough supply to meet the demand. Those who want the limited supply the most pay more while the one with less need wait. When I go the farmers market and they have the first fresh strawberries of the season I know the seller with the earliest ones will charge more for the few baskets he has, I know if I wait a week or two more sellers will have them and the price will drop.
 

begreen

Mooderator
Staff member
Nov 18, 2005
87,751
South Puget Sound, WA
Funny thing. I drive by a large mill in Darrington, WA a few times a year. When I drove by it a couple months ago, there were acres of milled wood there. To see it one would ask, what shortage? I'll be going by again tomorrow and will try to remember to take a picture.
 

Seasoned Oak

Minister of Fire
Oct 17, 2008
7,216
Eastern Central PA
Retail prices still going up. .Today 2x4x8s were $12.50 each . 3 times the normal price. 12 footers were $19 @. Had to pay as the job has to get done.
 

mellow

Resident Stove Connoisseur
Jan 19, 2008
5,226
Salisbury, MD
Retail prices still going up. .Today 2x4x8s were $12.50 each . 3 times the normal price. 12 footers were $19 @. Had to pay as the job has to get done.
What gets me is if they still have the tag on the pallet the date is from early 2020 so they have stock piled quite a bit and just raising the price to make more.
 

EbS-P

Minister of Fire
Jan 19, 2019
737
SE North Carolina
I think it is more a case of supply chain disruption and recovery. There has been a surge in demand now but things are adjusting. The report today was the wholesale lumber prices are dropping.
So you are saying I’m not gonna be able to send a kid to one semester of college with this stack I just cut today;)
Futures markets only make the middle men money. Suppliers and consumers are just left at their mercy.
 

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SpaceBus

Minister of Fire
Nov 18, 2018
5,862
Downeast Maine
The price dropped below $900/mbf yesterday at the market close, which is encouraging.
 

SpaceBus

Minister of Fire
Nov 18, 2018
5,862
Downeast Maine
The question is how long does that take to trickle down, the prices shoot up quick, but much slower coming back down.
I don't think we will ever see $300/mbf again, but less than $900 is much better than $1400/mbf.
 

tlc1976

Minister of Fire
Oct 7, 2012
750
Northwest Lower Michigan
It will come down until the masses decide “hey lumber is affordable again” and supply goes out again, prices go back up. Will take a few iterations of this I think.
 
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peakbagger

Minister of Fire
Jul 11, 2008
6,239
Northern NH
I thinks folks are assuming markets are rational, they are not. All the producers wo have committed to cranking up new mills are going to be rushing product into the market to catch the crest, it usually leads to a glut and then they need to sell it for what ever they can get to cover their new fixed costs. Last thing I knew there was a shortage of truckers and that can lead to mill yards full of product.
 

begreen

Mooderator
Staff member
Nov 18, 2005
87,751
South Puget Sound, WA
Drove by the Hampton mill in Darrington on Sunday. It looked pretty normal. The yards were half-full of finished product and had lots of logs waiting for milling.