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Timber prices rise as inventories are restocked
04/12/2009
As a result of timber dealers restocking their inventories in response to a fall in production to meet demand, prices of timber in the US have risen.
Recent prices of framing lumber were up 9.7 per cent from the same point a year ago, while the prices of structural panels were up 2.6 per cent.
Shawn Church, the editor of an Oregon publication, explained what is going on in the market for timber: "I think it's a situation where production has worked its way down to the low level of demand historically. Also, retail inventories across the country have been worked down to bare-bone levels. Distributors and dealers are having to come into the market to replenish those bare-bone inventories more frequently."
The recession has forced some mills in the region to reduce production, which has in turn meant that supply has struggled to keep up with demand. Earlier in November, Western Wood Products Association, which is based in Oregon, stated that there were signs that the industry is set to recover in early 2010.
The association predicted an 11 per cent rise in demand to 34.5 billion board feet, while house building starts are set to increase by 21 per cent.
Recent prices of framing lumber were up 9.7 per cent from the same point a year ago, while the prices of structural panels were up 2.6 per cent.
Shawn Church, the editor of an Oregon publication, explained what is going on in the market for timber: "I think it's a situation where production has worked its way down to the low level of demand historically. Also, retail inventories across the country have been worked down to bare-bone levels. Distributors and dealers are having to come into the market to replenish those bare-bone inventories more frequently."
The recession has forced some mills in the region to reduce production, which has in turn meant that supply has struggled to keep up with demand. Earlier in November, Western Wood Products Association, which is based in Oregon, stated that there were signs that the industry is set to recover in early 2010.
The association predicted an 11 per cent rise in demand to 34.5 billion board feet, while house building starts are set to increase by 21 per cent.
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