Softwood lumber prices reach stratospheric heights

Friday 30 Apr 2021

Compared to March 2020 total residential starts in the US last month shot up by +37% to a 1.74 million annualized rate, from 1.27 in the same month one year ago. Permits for future homebuilding increased spectacularly compared to one year ago, up by +30% to a rate of 1.77 million units last month compared to March 2020 when it was 1.36 million.

March starts of single-family housing, the largest share of the market and construction method which uses the most wood, flew up by +37% compared to March 2020, at 1.24 million. Single-family permits were at 1.2 million, a significant jump of +36% compared to the same month last year.

As for lumber prices, after reaching the seemingly unbelievable level of US$1,130, in the week ending April 9, 2021, the wholesaler price of benchmark softwood lumber commodity item Western S-P-F KD 2×4 #2&Btr was US$1,210 mfbm for the week ending April 16. This is up by +$80, or +6%, from the previous week. That week’s price is up by +$93, or +9%, from one month ago when it was $1,040.

For further coverage on the pricing boom click here

Source: Madisons, TreeFrog, Bloomberg

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