Wood prices are on the rise again, but this time you can’t blame the pandemic.
Why this matters: Instead blame climate change. Extreme weather in Canada fueled the surge – a sign that even when the pandemic cripples supply chains, it is about to get cowardly.
- December was warmer than usual in many areas of the U.S., so homebuilders — rushing to meet demand — Stinson Dean, CEO of Deacon Lumber in Kansas City, Mo., tells Nerdshala.
- During this, biblical flood In British Columbia, supplies from the north were derailed and damaged rail lines that usually transport lumber.
“When people in the industry Saw the railway lines destroyed… everyone panicked and started buying whatever they could get on hand,” the dean said.
Flashback: Rising lumber prices became something of a poster child for a high inflation economy last spring. Rising demand for homes and home renovations clashed with short supply, thanks to pandemic-idling sawmills – other supply chain snarls didn’t help either.
- When the price dropped in June, Fed Chairman Jerome Powell pointed to it as a sign that “high inflation”start reducing“- a comment that was very hopeful in sight.