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Lumber prices soar due to shutdowns, higher demand

August 21, 2020

Several factors have led to the price jump, according to the Wall Street Journal:

  • An increase in residential construction including do-it-yourself projects like decks.
  • Low mortgage rates that spurred residential construction and remodeling.
  • The construction of outdoor seating and dining areas for restaurants across the country.
  • Lumber mills that were unprepared for the surge in demand.

Another reason for the increase could be attributed to the days and months lost when the mills shut down. The mills could still be catching up and recovering from decreased inventory, according to Mark Dumain, who manages activity on the futures market for LBM Advantage, a lumber buying cooperative.

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