(23) comments Back to story

Bailey Jones

Probably why Home Depot and Lowes stock is through the roof in the last few months.

Carlos Ponce

Higher fuel prices used in transporting lumber to the lumber yards.

Add a mileage tax proposed by Transportation Secretary Butt..

Add more forestry regulations by the current administration. Part of the "Green New Deal" under the guise of "Infrastructure".

Things don't look promising for the home building industry nor potential home owners or even maintenance, repair or upgrades to existing homes.

Gary Scoggin

How much do the things you mentioned add to the increased cost? Do you have data or is it supposition that those things are causing material increases?

Bobby Pope

The data is from the front page of the Wall Street Journal to the back page. There is shortages all across the supply chain. In my business we can not get raw ingredients. No one saw this demand coming, everyone thought we were headed for a slow down and it went the other way. My shipments from Italy are running late and when they arrive its always short. We have to allocate products to our end users so when you find certain things at HEB and Kroger it's because they can't get them.

Bailey Jones

Same with electronic parts. https://www.allaboutcircuits.com/industry-articles/the-domino-effect-of-the-automotive-semiconductor-shortage/

Carlos Ponce

"How much do the things you mentioned add to the increased cost?" A great deal, Gary Scoggin. Costs are passed on from supplier to local business to customer. My dad worked at lumber yards/hardware stores for 40 years. There was a percentage markup from original cost which he never changed. That kept the inventory fresh as the older products seemed cheaper and were quickly purchased when compared to newer acquisitions. That's when items had price tags. Now compare that to big box stores which mark up everything according to current prices no matter how long it's been on the shelf.

Dwight Burns

Bunk!!!

Jim Forsythe

What caused lumber to increase from roughly $250 per 1000 board feet to over $850 per 1000 board feet?

Demand for lumber continued to increase over the past few months, supply has not been able to catch up, resulting in an increase in lumber’s cost by 340% or more in particular locations.

Carlos Ponce

Demand is only part of the equation, Jim.

Bailey Jones

Jim, obviously if gas prices are up 20% and there's no Republican in the White House then that equals a 340% increase in lumber prices, although, magically, not everything else.

Carlos Ponce

It's cumulative, Bailey. Think of all the times fuel is used:

Forest to sawmill.

Sawmill to distributors.

Distributors to job site. And each time, costs are passed on.

But I gave OTHER reasons why the price of lumber is going up that you ignore.

Jim Forsythe

The average price of gas 2018, $2.75. Gas prices now is about $2.50, so the price of gas is not a factor.

2018 price for lumber, $0.25 to $0.50 per board foot. Todays price is $850 per 1000 board feet. Same number of trees that can be used for lumber , so no shortage of lumber making materials.

Tariffs on Canadian lumber has been reduced form 20% to 9%.

Demanded is up because many people while they were staying home last year, did many home improvement projects that depleted lumber supply. Many mills were shutdown for some time because of Covid19, which also caused a shortage.

New houses are being built because of the low interest rate, which causes a shortage of available lumber.

Carlos Ponce

"price of gas is not a factor" I just heard from someone who works at a lumber yard and he said the price of gas and diesel is a contributing factor.

Jim Forsythe

Gas $2.40 in Hitchcock. No factor in the cost of lumber unless you use the price last year that was artificially low .because of Covid19

Carlos Ponce

Have you ever seen a semi lumber hauler that was gasoline powered? Try diesel.

Jim Forsythe

The price of diesel is the lower this year, compared to the last few years. Below is the average price of diesel, in January of the last few years.

2021 $2.681, 2020 $3.048, 2019 $2.980, 2018 $3.018.

So it can not be the price of diesel, that has increased the price of lumber!

In the past semi trucks did have gasoline engines. My Uncle drove one.

Amid inexpensive gasoline prices, heavy-duty and semi trucks often utilized gas-powered engines over diesel, which led to the gasoline-fed V12’s birth. If the price of gas becomes 30% cheaper than diesel, the gas powered semi may make a comeback.

Carlos Ponce

Going back in time to see a gas powered 18 wheeler doesn't help your story. The price is rising.

You remind me of the story of the blind men and the elephant . You refuse to see the whole picture. There is not one factor contributing to the rise in lumber prices. If your mind cannot grasp that.... sounds like a personal problem.

Jim Forsythe

What are the factors contributing to the rise in lumber prices, besides demand?

Future gas prices has nothing to do with the price of lumber now.

The price of lumber today, is driven by demand.

Unless there is a disruption in supply of crude, price of gas and diesel has stabilized for the near future.

In its latest Short-Term Energy Outlook, EIA expects regular gasoline retail prices to average $2.42/gal in 2021 and $2.43/gal in 2022 and on-highway diesel prices to average $2.71/gal in 2021 and $2.74/gal in 2022. Demand for transportation fuels fell in 2020 primarily because of responses to the COVID-19 pandemic.

Carlos Ponce

I could give you an answer bu Jim Forsythe would just argue.

Jim Forsythe

What are the factors contributing to the rise in lumber prices, besides demand?

Carlos Ponce

I could give you an answer bu Jim Forsythe would just argue

Jim Forsythe

What are the factors contributing to the rise in lumber prices, besides demand?

Jim Forsythe

In 2020, customers at U.S. gas stations were charged 2.17 U.S. dollars per gallon, down almost 17 percent from 2.6 U.S. dollars in 2019.

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