During the week ending November 26, 2021, transportation routes in southern British Columbia suffered massive flooding and infrastructure damage, which took months to repair, so industry participants have not yet been able to determine what this supply barrier will cause to the wood Affect prices.
However, as we all know, the current balance of supply and demand is clearly beneficial to producers. This is because most players do not stock up and generally hope that the price will drop.
Now, transporting wood from BC’s important fiber basket is facing huge logistical challenges, and those who still need wood before the end of this year are scrambling to find any material they can find.
Of course, this will push up prices. Usually at this time of the year, buyers have already ordered-and indeed received-any timber construction materials they need at the end of the year, and the price starts to drop. This was not the case last year, and it does not seem to be the case this year.
Two Canadian railways have resumed crossing southern British Columbia, and the Port of Vancouver has reopened. However, there is a large backlog of goods waiting to be transported, which can take a long time to complete at the best of times, let alone during busy holidays.
Compared with the previous week, it increased and remained the same as the same week a year ago. In the week of November 26, 2021, the price of WSPF 2×4 #2&Btr KD (RL) was 645 USD mfbm. This is an increase of $15 or 2% from the $630 of the previous week.
According to Tier 1 and Tier 2 suppliers, traders of S-P-F timber and studs in the western United States indicated strong demand due to multiple logistics and supply issues. Hesitant buyers lost sales. Most of the sawmill’s order documents have been extended to mid-December. It laid the foundation for a solid end in 2021 and a better start in 2022.
Increasing demand for Western S-P-F specification lumber continues to drive the overall timber market. The sawmill order documents for most projects are in the second week of December. The final decision of the U.S. Department of Commerce on the second administrative review of softwood timber tariffs in 2019 increased the comprehensive tax rate for most Canadian operators from 8.99% to 17.9%.
In the week of November 26, 2021, the price of WSPF 2×4 #2&Btr KD (RL) increased by +16 dollars, or +3%, from the 629 dollars mfbm a month ago.
Compared with the 620 USD in the same week last year, the price this week has increased by +25 USD, or +4%.
Compared with the 394 dollars two years ago, the price of that week increased by + 251 dollars, or +39%.