U.S. and Canadian Lumber Prices Spike in 2Q - Modern Distribution Management

Log In

U.S. and Canadian Lumber Prices Spike in 2Q

Wood Resources International’s quarterly report said the cost for lumber in China has reached a record high this year.
Buffalo Grove, Illinois-based building materials distributor US LBM has acquired Florida truss manufacturer and supplier Deco Truss.

U.S. lumber prices reached unprecedented highs in the second quarter of this year, according to Wood Resources International. The costs for 2×4 framing pine lumber in the U.S. South averaged almost $800 calculating cubic meters (m3) in May, up from $210/m3 as recent as February 2020 and nearly four times as much as the 20-year average price for southern yellow pine.

The costs for sawlogs, typically accounting for 60% to 70% of the production costs when manufacturing lumber, have seen only relatively small adjustments throughout the first half of 2021 in the key lumber-producing regions of North America, according to the Wood Resource Quarterly. The report said the favorable lumber price/sawlog cost ratio has resulted in record-high profits for lumber companies across the continent.

Canadian lumber prices have spiked similarly to the U.S. prices, with record highs in May followed by sharp declines during June through August. Canada and the U.S. reduced lumber exports overseas in the first half of 2021 due to the strong U.S. lumber market. The most significant decline came in North American shipments headed to China, which fell from over 1.9 million m3 in the first half of last year to only 820,000 m3 in the in the first half of 2021.

The costs for lumber in China reached their highest levels on record. Canadian lumber prices have gone up the most as they have been heavily impacted by the alternative market in the U.S., according to the report. From late 2020 to July 2021, Chinese import prices for lumber from British Columbia were up about 60% during this period.

The high cost of lumber this year has been driven in large part by a boom in residential housing construction.


Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.