Tighter Global Lumber Markets
Anyone who recently bought sawn lumber will know that prices are high this year. This is felt globally, but nowhere more than in North America where average prices for 2021 are more than twice their long-run average levels (Figure 1), although US prices have come back down in June and July. Prices are also high in New Zealand, due to elevated sawlog export prices, and strong demand for lumber for everything from fruit pallets to house framing. While this is welcomed by forest owners and sawmills, it is driving costs in construction and packaging, leaving many producers and buyers globally to wonder when lumber prices will return to normal.