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| US lumber prices skyrocket 250% as Covid drives home-buying demand higher | US lumber prices skyrocket 250% as Covid drives home-buying demand higher |
| (about 2 months later) | |
| Prices for lumber managed to grab the headlines after an unprecedented sharp increase which currently threatens housing affordability across the United States. | Prices for lumber managed to grab the headlines after an unprecedented sharp increase which currently threatens housing affordability across the United States. |
| “Lumber prices have skyrocketed nearly 250% since April 2020. This price spike has caused the price of an average new single-family home to increase by more than $24,000,” reported the National Association of Home Builders. | “Lumber prices have skyrocketed nearly 250% since April 2020. This price spike has caused the price of an average new single-family home to increase by more than $24,000,” reported the National Association of Home Builders. |
| On Monday, the May futures contract price per thousand board feet of two-by-fours reportedly surged from $48 to $1,420. The moonshot reportedly caused lumber trading to halt for the day. | On Monday, the May futures contract price per thousand board feet of two-by-fours reportedly surged from $48 to $1,420. The moonshot reportedly caused lumber trading to halt for the day. |
| “The market is in trouble. It could spiral out of control in the next few months,” Dustin Jalbert, senior economist at Fastmarkets RISI said as quoted by Fortune. | “The market is in trouble. It could spiral out of control in the next few months,” Dustin Jalbert, senior economist at Fastmarkets RISI said as quoted by Fortune. |
| According to the expert, the backlogged supply is not able to catch up with the demand that keeps growing after the season of home building and home renovation were opened. | According to the expert, the backlogged supply is not able to catch up with the demand that keeps growing after the season of home building and home renovation were opened. |
| Apart from steadily increasing home construction, the price spike is attributed to the supply chain that is getting disrupted by Covid-19-related lumber yard shutdowns, Gary Poulos, lumber division president for Mill Creek Lumber & Supply told one of the local media outlets. | Apart from steadily increasing home construction, the price spike is attributed to the supply chain that is getting disrupted by Covid-19-related lumber yard shutdowns, Gary Poulos, lumber division president for Mill Creek Lumber & Supply told one of the local media outlets. |
| The official added that the pandemic-related transportation issues exacerbated the surge in prices. Moreover, extreme winter weather also caused a shutdown of Gulf Coast refineries, causing an unavoidable shortage of other building supplies. | The official added that the pandemic-related transportation issues exacerbated the surge in prices. Moreover, extreme winter weather also caused a shutdown of Gulf Coast refineries, causing an unavoidable shortage of other building supplies. |
| Lumber prices are expected to grow for quite some time amid soaring lumber futures contracts, including those for November, Stinson Dean, CEO of Deacon Lumber, told Fortune. | Lumber prices are expected to grow for quite some time amid soaring lumber futures contracts, including those for November, Stinson Dean, CEO of Deacon Lumber, told Fortune. |
| Prices are expected to correct only if demand cools down, which is not likely to occur until the home building and renovation seasons are over. | Prices are expected to correct only if demand cools down, which is not likely to occur until the home building and renovation seasons are over. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |