What is going on?

[Ed in Tampa]

I am sure all of you have noted a price of lumber jumping 4 and 5 times normal costs. 2x4 selling for over a dollar a foot. I was told it was because China was buying up all the lumber. I did not know but the seemed to make sense.

Well I just talked to my buddy that lives in mid Georgia. He passes a ton of huge lumber mills when he travels over to Savannah. He was telling me they have fresh cut timber stacked everywhere in 100 foot high piles, cut lumber stacked the normal 8 x8 x8 stacks ready for shipment in stacks too numerous to count. They have kiln dried wood turning grey it has been sitting so long.

They are clearing 70 acre hunk of land near his house and can only cut when the mills will take the lumber. They cut 1 or 2 days then don't cut for a week or two then cut for a day and quit for another week or two. They have thousands of dollars of lumbering equipment sitting idle.

My question is what going on in supply and demand economy lumber prices should be at an all time low based on stock pile of processed lumber but instead it is 4 and 5 times higher than normal.

[wa2crk]

It's called supply and demand. If you can control the supply you can demand the price.
Bill V

[garys]

I haven't purchased any lumber lately so I didn't notice a price increase. I hope it doesn't stay that way as I do my woodworking in the Winter and as Winter gets closer, I'll be buying wood again.

[Ed in Tampa]

I agree if you control supply you can control prices. But letting wood sit until it turns grey is shooting yourself in the foot.

OSB is now selling for 3 times what it was. And even steel studs have increased in price by about a factor of 3.

Talking to builders they say material costs are increasing by a factor of 3-5 times normal cost.

I pity the guy that gets a construction loan to build a $100k house and now has to go back to the bank and ask for an additional $200k to finish.

What was cheap plywood is now at the old price of oak veneered ply and cabinet grade ply will stop your heart.

Think about it paying over a $1 a foot for 2x4 construction grade pine studs

[thunderbirdbat]

I do not know about China but around here there is a very high demand for construction material as people and businesses try to rebuild after the Derecho. There are lots of places that need new roofs including sheathing and others that need to be totally rebuilt.

[sehast]

There is a big resurgence in building new homes now. Everyone wants to move out of cramped quarters in the cities into single family housing due to the virus. That and the fact that lumber workers in some areas have not been able to cut and mill fresh stock due to the restrictions in some states has led to a national lumber shortage. Has nothing to do with China.

[JPG]

I do not know about China but around here there is a very high demand for construction material as people and businesses try to rebuild after the Derecho. There are lots of places that need new roofs including sheathing and others that need to be totally rebuilt.

I consider that to be gouging!

However it does tend to moderate demand.

[thunderbirdbat]

I do not know about China but around here there is a very high demand for construction material as people and businesses try to rebuild after the Derecho. There are lots of places that need new roofs including sheathing and others that need to be totally rebuilt.

I consider that to be gouging!

However it does tend to moderate demand.

Since the price increase is applied everywhere they can get away with it. If it was only in a local area they could be charged with price gouging.

[JPG]

I do not know about China but around here there is a very high demand for construction material as people and businesses try to rebuild after the Derecho. There are lots of places that need new roofs including sheathing and others that need to be totally rebuilt.

I consider that to be gouging!

However it does tend to moderate demand.

Since the price increase is applied everywhere they can get away with it. If it was only in a local area they could be charged with price gouging.

OK call it collusion.

[rlkeeney]

Never let a good crisis go to waste.