Supply And Demand Behind High Lumber Prices

Full-year 2021 data for Canada and the U.S. demonstrates why lumber prices have been higher the past two years: basic supply and demand, says Madison’s Lumber Reporter. For a lot of 2021, 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 2022 was under way. As long as this strong demand situation continues, there is no reason for lumber manufacturers to lower prices. That’s why this year’s building season will likely be very similar to last year, it says.