Wildfires are pushing up lumber prices — but not for why you might think

The price of lumber rose at its fastest pace in more than a year on Thursday, after timber companies warned that wildfires in Western Canada are hurting their business.

The price of a lumber futures contract jumped by more than 10 per cent, triggering circuit breakers designed to halt trading. Late in the day on Thursday, a contract for 1,000 board-feet of lumber was going for $647 US, up by more than $60 from the previous day’s close.

Prices are spiking because lumber companies in B.C. and elsewhere are scaling back operations because of wildfires.

Vancouver-based Canfor said it will produce about 115 million fewer board-feet of product this quarter because wildfires have damaged the rail network on which it depends. CN lost the use of at least one rail bridge on its line into Vancouver, and CP is facing similar bottlenecks.

“Canadian rails will … face pressure from wildfires in British Columbia as volumes may take several more weeks to fully recover,” Bloomberg Intelligence railway analyst Adam Roszkowski said in a note to clients on Thursday.

That means it’s harder to move just about anything to market, so Canfor is going to take its foot off the gas.

Canfor’s anticipated production drop of 115 million board-feet of wood is less than 1 per cent of what the industry normally cranks out every quarter. But Bank of Montreal analyst Mark Wilde said he expects more companies will also have to reduce production in the next little while.

“We expect more announcements of reduced shifts/hours over the next two to three weeks,” he said in a note to clients Thursday.

Lumber boom

Like many industries, the lumber business slowed down at the start of the pandemic as workers were sent home and facilities idled. But demand for lumber unexpectedly exploded, mainly due to booming demand for home renovations.

At one point in May, the price of lumber hit an all-time high of more than $1,600 US per 1,000 board-feet or about five times what it was at the start of the pandemic. Builders reported that higher lumber prices were adding as much as $30,000 to the cost of constructing a standard home and lumber yards across the country were selling out.

WATCH | Why high lumber prices are going to make everything more expensive:

The pandemic has disrupted supply chains so much that the price of lumber has gone through the roof. 1:58

But things changed in a hurry. Those astronomical prices caused demand to crater once again, leading to inventory piling up at lumber yards as people shelved their do-it-yourself construction plans.

“People were holding off unless they really needed that wood right now, so there’s a bit of pent-up demand,” is how Kéta Kosman, publisher of Madison’s Lumber Reporter, described it in an interview with CBC News.

Big box retailers in the U.S. such as Home Depot have reported that demand for lumber is down by almost half since May.

“After a year of chasing inventory, the market is now struggling with bulging inventories at many mills in the U.S. and Canada,” Wilde said.

So a lack of supply pushed up prices in May, which led to a lack of demand from consumers in June. Now the pendulum is swinging back toward another perceived supply problem, Kosman said.

“When there’s fires like this, it creates a perception that there will be a shortage of supplies and there is a reaction,” she said. “When we have these big fluctuations over this year where the price is so sky high, I do think it’s possible that the correction down may have gone too far.”

After feverish demand a few months ago, lumber is starting to pile up as consumers balked at astronomical prices. (Robert Short/CBC)

Indeed, the correction was so swift that Wilde said a number of B.C. sawmills were likely recently selling lumber for less than the cost of production.

“At those levels, some B.C. mills may need a snorkel,” Wilde said of when the price dipped as low as $435 US. “It would be crazy to simply return all that cash to the market by overproducing during a weak market.”

Hurricanes playing a role, too

Kosman notes that wildfires aren’t the only way Mother Nature is impacting the lumber market. On top of the fires in western North America, violent storms in the East are looming, too.

“The fires in the West right now are a month earlier than we would normally have. And the storm season in the south and in the East Coast is two months earlier [than] would normally be,” she said. “So that’s a lot of potentially rebuilding and a lot of ordering of plywood first to board up the windows and then for reroofing.”


84 Responses

  1. MelvinBus says:

    alternatives to viagra [url=https://viagrahh.com]sildenafil tablet 200mg[/url] rush limbaugh viagra
    sildenafil rx canadian viagra sildenafil reviews

  2. Alanfup says:

    [url=http://orderviagrapillsprescription.quest/]india viagra online[/url] [url=http://ordercialistabletnorx.monster/]buy cialis 20mg online[/url] [url=http://genericcialistabletswithnorx.monster/]south africa cialis[/url] [url=http://orderviagrapillsnorx.monster/]how can i get viagra prescription[/url] [url=http://ordergenericviagratabs.monster/]online viagra canada[/url] [url=http://cialisbestdrugsale.quest/]cheap cialis soft[/url] [url=http://bestviagra200tablet.quest/]viagra coupon canada[/url] [url=http://cheapcialistablet.quest/]tadalafil 100mg online[/url] [url=http://buyinggenericcialispillonline.quest/]cialis soft tabs original[/url] [url=http://cheapviagra150tablet.monster/]viagra 100 mg generic[/url]

  3. Kiafup says:

    [url=https://viagrabesttabsforsale.quest/]how to buy generic viagra safely online[/url]

  4. Kiafup says:

    [url=https://buyviagra50mgprescription.quest/]viagra online without a prescription[/url]

  5. Turkey Hair Expert provides high quality and safe hair transplant in Turkey at its contracted
    premier clinic, using the most advanced techniques
    and technologies. With a patient-centric and ethical approach, Turkey Hair Expert offers high-quality hair transplantation in Turkey with
    its experienced doctors and medical team.

  6. Yonfup says:

    [url=https://cheapviagratabs.quest/]otc viagra pills[/url]

  7. Могу посоветовать тебе бомбезныйТоп
    онлайн казино Украина!
    У нас только самый лучшие заведения СНГ

  8. Paulfup says:

    [url=https://cialisdrugpharmacy.monster/]tadalafil citrate[/url]

  9. Judyfup says:

    [url=http://sildenafilcipill.online/]sildenafil citrate generic[/url]

  10. Click here says:

    After looking over a few of the blog articles on your
    site, I honestly like your technique of blogging.
    I bookmarked it to my bookmark website list and will be checking
    back in the near future. Please check out my web site
    as well and tell me your opinion.

  11. This is my first time pay a quick visit at here and i am genuinely impressed
    to read all at one place.

  12. Jasonfup says:

    [url=http://ivermectinepharm.online/]ivermectin online[/url] [url=http://buyviagra150mgpills.monster/]how to buy viagra over the counter uk[/url] [url=http://viagracheaptabsforsaleonline.monster/]where can you buy viagra[/url] [url=http://onlineviagradrugforsaleonline.monster/]viagra for sale from canada[/url] [url=http://buygenericviagra50mg.monster/]sildenafil 55mg[/url] [url=http://bestcialisonlinepharmacy.monster/]online cialis order[/url] [url=http://viagrabesttabsonlinepharmacy.quest/]viagra paypal australia[/url] [url=http://cheapviagrapillsnoprescription.monster/]where to buy viagra in mexico[/url] [url=http://onlineviagramedicineforsaleonline.monster/]300 mg viagra[/url] [url=http://cialisprice.monster/]cialis brand[/url]

  13. Zakfup says:

    [url=https://viagrabuyingonline.quest/]sildenafil online prices[/url]

  14. Amyfup says:

    [url=http://onlineviagra50tablets.monster/]purchase viagra canada[/url]

  15. Kiafup says:

    [url=http://xcialis.monster/]soft cialis generic[/url]

  16. Do you mind if I quote a few of your articles as long as I provide credit and sources back to your website?
    My website is in the exact same area of interest as yours and my users
    would really benefit from a lot of the information you provide
    here. Please let me know if this alright with
    you. Appreciate it!

  17. Tedfup says:

    [url=https://buyingbestviagrapills.quest/]buy viagra over the counter in australia[/url]

  18. RobertLonna says:

    cialis soft gel [url=https://cialisola.com]cialis patent[/url] cialis pill
    tadalafil 10mg cost brand name cialis cialis and depression

  19. Maryfup says:

    [url=https://onlineviagramedicineforsaleonline.monster/]canadian pharmacy viagra prices[/url]

  20. можно ли получить водительские права в армии

  21. An intriguing discussion is worth comment. I believe that you need to write more on this topic,
    it may not be a taboo subject but usually people do not discuss these subjects.
    To the next! Many thanks!!

  22. Pretty nice post. I just stumbled upon your weblog and
    wished to mention that I’ve really enjoyed surfing around your weblog posts.

    After all I will be subscribing on your feed and I am hoping you write
    again soon!

  23. top up ml says:

    Hi, i think that i saw you visited my blog thus i came to “return the favor”.I am
    attempting to find things to enhance my web site!I
    suppose its ok to use some of your ideas!!

  24. I visited many websites but the audio feature for audio songs existing at this site is in fact excellent.

  25. naturally like your website but you have to check the spelling on several of your posts.
    Several of them are rife with spelling issues and I to find
    it very troublesome to inform the truth however I’ll definitely come back again.

  26. Права для управления ассенизатором специальный документ получение
    которого осуществляется в гостехнадзоре !
    Самостоятельное оформление требует долгого и сложного обучения, при этом нет гарантии что документ будет получен.
    С компанией права112 права на ассенизатор будут получены 100%, ведь оплата производится только после того как документ готов.

  27. inhaler otc says:

    salbutamol mechanism of action – generic albuterol inhaler price
    You have made your position pretty well..

  28. It’s in reality a great and helpful piece of info.
    I am glad that you shared this helpful info with us. Please keep us up to date
    like this. Thank you for sharing.

  29. Good post. I learn something totally new and challenging on sites I stumbleupon everyday.
    It will always be exciting to read content from other writers and use a little something from their

  30. сколько стоит получить международные водительские права

  31. I am really enjoying the theme/design of your blog. Do you ever run into any browser compatibility problems?
    A number of my blog audience have complained about my blog not working correctly in Explorer but looks great in Safari.
    Do you have any recommendations to help fix this issue?

  32. Margene says:

    It’s very effortless to find out any topic on net as compared to textbooks, as I found
    this piece of writing at this web page.

  33. Fantastic post but I was wondering if you could write a litte more on this subject?
    I’d be very thankful if you could elaborate a little bit more.
    Thank you!

  34. I savor, lead to I discovered exactly what I was taking a look for.
    You’ve ended my 4 day lengthy hunt! God Bless you man. Have a nice day.

  35. Having read this I thought it was very enlightening. I appreciate you spending some time and effort to put this informative article together.
    I once again find myself personally spending a lot of time both reading and
    leaving comments. But so what, it was still worth it!

  36. Jere says:

    I enjoy what you guys tend to be up too. This sort of clever
    work and coverage! Keep up the amazing works guys I’ve incorporated you guys to my personal blogroll.

  37. Hello friends, pleasant piece of writing and
    pleasant urging commented here, I am really enjoying by these.

  38. Аренда квартир в Анталии

  39. online casino visa gift card
    baccarat the internet casino game
    casino gambling game online slot

  40. Combine says:

    Heya outstanding blog! Does running a blog such as
    this require a large amount of work? I have virtually no knowledge of
    coding but I had been hoping to start my own blog soon. Anyways,
    should you have any suggestions or techniques for new blog owners please share.
    I know this is off topic however I just had to ask.

  41. igseller.net says:

    Every weekend i used to pay a quick visit this
    web page, for the reason that i want enjoyment, as this this
    website conations truly pleasant funny data too.

  42. 스웨디시 says:

    The other day, while I was at work, my sister stole my iphone and tested to see if it can survive a forty foot drop, just so she
    can be a youtube sensation. My iPad is now
    destroyed and she has 83 views. I know this is completely off topic but I had to share it with someone!

  43. 1인샵 says:

    Pretty great post. I just stumbled upon your blog and wanted to mention that
    I have really enjoyed browsing your blog posts. After all I will be subscribing in your
    rss feed and I hope you write again soon!

  44. 로미로미 says:

    I really like your blog.. very nice colors & theme.
    Did you create this website yourself or did you hire
    someone to do it for you? Plz respond as I’m looking to create my own blog and would like to know where u got this from.

  45. Ꮋello tһere everybody at andrewwbradley.ca. I am the founder ⲟf
    StarLightBreeze.com Guided Meditations Web Site.
    Ι woᥙld ⅼike to share my complimentary relaxation audio lectures ѕuch as Guided Meditation fߋr BreakUp ɑnd
    Broken Heart ɑnd Guided Meditation fоr Tiredness with
    every οne ɑt andrewwbradley.ca to assist уou to taкe care of stress and anxiey and
    alѕo unwind. Mucch Love xox

    My web-site – c7723112421475999047

  46. hello!,I like your writing so much! percentage we keep up a correspondence more approximately your article
    on AOL? I need a specialist in this house to resolve
    my problem. Maybe that’s you! Having a look ahead to see you.

  47. 홈타이 says:

    I simply could not leave your web site before suggesting that I actually loved the standard information an individual provide on your
    visitors? Is gonna be again often to check out new posts

  48. 스웨디시 says:

    It is perfect time to make some plans for the future and it is time to be happy.
    I’ve read this post and if I could I want to suggest you few interesting things or
    suggestions. Perhaps you could write next articles referring to this
    article. I desire to read even more things about it!

  49. 마사지 says:

    Aw, this was a really nice post. Taking the time and actual effort to produce a superb article…
    but what can I say… I hesitate a whole lot and never manage to get nearly
    anything done.

  50. isis oasis says:

    Greetings! I’ve been following your web site for
    a long time now and finally got the courage to go ahead and give you a
    shout out from Houston Tx! Just wanted to say keep up the good work!

  51. magnificent points altogether, you just won a logo new reader.

    What could you recommend in regards to your submit that you just made a few days
    in the past? Any sure?

  52. 건마 says:

    I absolutely love your blog and find many of your post’s
    to be just what I’m looking for. Does one offer guest writers to write
    content for you? I wouldn’t mind producing a post or elaborating on a number of the subjects
    you write in relation to here. Again, awesome blog!

  53. XH says:

    There’s definately a lot to learn about this topic.
    I like all the points you have made.

  54. I do not know whether it’s just me or if everyone else encountering issues with your blog.
    It appears as though some of the written text within your posts are running off the screen. Can someone
    else please provide feedback and let me know if this is happening to them too?
    This might be a issue with my web browser because I’ve had
    this happen previously. Cheers

  55. Have you ever considered about including a little bit more than just your articles?
    why am i losing my hair
    mean, what you say is important and all. Nevertheless think of if you added
    some great photos or video clips to give your posts more, “pop”!
    Your content is excellent but with pics and video clips, this site could certainly be one of the best in its field.

    Good blog!

  56. Thanks for finally talking about > Wildfires Are Pushing Up Lumber Prices — But
    Not For Why You Might Think < Loved it!

  57. караганда станция большая михайловка

  58. I savor, lead to I discovered exactly what I used to be looking for.
    You have ended my four day lengthy hunt! God Bless you
    man. Have a great day. Bye

  59. Asking questions are really pleasant thing if you are not understanding something totally, but this post presents nice
    understanding even.

  60. newses says:

    An outstanding share! I’ve just forwarded this onto a friend who was conducting a little homework on this.
    And he in fact bought me lunch because I stumbled upon it for him…
    lol. So allow me to reword this…. Thank YOU for the meal!!
    But yeah, thanks for spending the time to discuss this issue here on your internet site.

  61. Hey there! Quick question that’s completely off topic. Do you know how to make
    your site mobile friendly? My web site looks weird when browsing from my iphone 4.
    I’m trying to find a theme or plugin that might be able to resolve this problem.
    If you have any suggestions, please share. Thanks!

  62. Kennethshoge says:

    warnings for meloxicam [url=https://meloxicam20.us]meloxicam dosage ducks[/url] meloxicam and prozac interactions
    mobic meloxicam 75 meloxicam 10ml mobic medication dosing

  63. I was suggested this blog via my cousin. I’m no longer
    sure whether this publish is written by means of him as no one
    else recognize such specified approximately my difficulty.
    You’re amazing! Thanks!

  64. bookmarked!!, I like your web site!

    Visit my blog: hormonal acne treatment

  65. What a stuff of un-ambiguity and preserveness of valuable knowledge
    about unpredicted emotions.

  66. twitter says:

    Thank you for the auspicious writeup. It in fact was a
    amusement account it. Look advanced to far added agreeable
    from you! However, how could we communicate?

  67. lightweight body armor level 4

  68. Hello there, I found your blog by the use of Google whilst looking for a comparable matter, your web
    site came up, it seems great. I have bookmarked it in my
    google bookmarks.
    Hi there, simply became aware of your weblog through
    Google, and located that it is really informative.
    I am gonna watch out for brussels. I will be grateful if you continue this in future.
    Numerous other folks shall be benefited out of
    your writing. Cheers!

  69. I’m glad you enjoyed the article, Sherry! No, that was not me playing the
    backing track. I’m guessing you already saw this guitar article I posted to the channel last year,
    but just in case: https://youtu.be/MG51rLOm6F0Thanks!Tom

  70. I have been exploring for a bit for any high quality articles or blog posts in this kind of
    area . Exploring in Yahoo I at last stumbled upon this website.
    Studying this info So i’m glad to convey that I’ve an incredibly
    good uncanny feeling I came upon just what I needed. I so much indubitably will
    make sure to don?t fail to remember this website and provides it a glance regularly.

  71. dewa togel says:

    Hi, Neat post. There’s a problem along with your site in internet explorer, would check this?
    IE nonetheless is the market leader and a huge section of other folks will pass
    over your fantastic writing because of this problem.

  72. Wonderful goods from you, man. I have consider your stuff prior to and you’re simply extremely
    excellent. I actually like what you’ve acquired here,
    really like what you’re stating and the way wherein you are saying it.
    You make it enjoyable and you continue to take care of to keep
    it sensible. I can’t wait to learn much more from you.
    That is really a great web site.

  73. MarcusHut says:

    online cialis sales [url=https://cialisbxe.com]5mg cialis cost[/url] cialis 500mg
    cialis pharmacy cost cialis 100mg dosage generic tadalafil medication

  74. you are really a just right webmaster. The site loading pace is
    amazing. It sort of feels that you’re doing any unique trick.
    Also, The contents are masterpiece. you have performed a wonderful job on this matter!

  75. Good way of explaining, and good paragraph to take facts concerning my presentation subject matter, which i am going to deliver in institution of higher education.

Leave a Reply

Your email address will not be published.