Consumers Refuse To Pay Higher Lumber Prices

Lumber prices rose yet again for the week ending May 14, however volumes sold were lower as customers refused to pay the higher prices, says Madison’s Lumber Prices. Those who needed wood for ongoing projects or purposes that could not be delayed sought out the specific products they needed only and paid whatever the asking price was. Accepting delivery as soon as possible was more important to them than price. However actual sales were down because buyers did not accept how high prices have become. The report says this mean North America construction framing dimension softwood lumber prices have reached the top. Compared to the price one-year-ago, on May 14, the price of Western S-P-F (Spruce-Pine-Fir) KD (kiln dried) 2x4 was up by $1,280, or 356 per cent. This could mean the prices will start going down but, more likely, it means prices will flatten out at least for a while until the wood still in the supply chain that customers have been waiting many weeks for arrives at its destination. Currently sawmills are selling lumber that will go into production in late-June, with delivery times approximately three weeks after that. Western S-P-F producers in Canada described tangibly quieter demand, especially on May 24 and 25.