U.S. lumber prices soar 60% year-over-year
Lumber production in the US and Canada improved during 2012, with total output in 2012 being eight per cent and five per cent higher, respectively, than in 2011, according to WWPA. Sawmills in the Western region have been more fortunate than mills in other regions in North America since they have been able to ship lumber both to markets in the US and to Asia.
The US housing market is continuing to improve, with higher house prices, lower inventories and limited sales of foreclosure homes (increasingly turned into rental properties). These developments have resulted in an increased number of housing starts and higher demand for lumber. Canadian sawmills, which export a majority of their lumber to the US, have been ramping up production during 2012 to meet the higher demand for lumber. This has been particularly true for sawmills in the Eastern provinces, where production in the 4Q/12 was up 16 per cent year-over-year.
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