In Canada and the US, the interplay between timber harvest, log availability, log costs, and lumber production is as murky — and fascinating — as the interplay between lumber manufacturing and sales / prices, and construction activity.
Full-year 2021 data is out for the supply side of the lumber industry. This data clearly demonstrates why lumber prices have been higher the past two years: basic supply-and-demand.
In our weekly lumber market commentary, available to subscribers of Madison’s Lumber Reporter, https://madisonsreport.com/products/ we provide details like: for a lot of last year, many sawmills across North America were booked for production as far as two months out.
This means that wood ordered in December 2021 would not be manufactured until this year was along the way. As long as this strong demand situation continues, there is no reason for lumber manufacturers to lower prices.
When folks ask Madison’s what to expect for this coming year’s building season, the answer is: it will probably be very similar to last year.
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