Lumber market prices on the rise

Both demand and prices in the lumber market in the US increased during the second quarter of the year.

The latest data from Wood Resource Quarterly revealed that timber prices were about 35 per cent higher in August of this year when compared to the same month in 2011. Meanwhile, sawlog prices showed a more variable pattern with prices rising in certain areas and falling in others.

In light of these trends, the report suggested that the North American lumber market is becoming a seller's market once again, due to the substantial increase in demand. Indeed, consumption in May was up 13 per cent year-on-year.

As the housing and remodelling industries gradually return to growth, the increase in demand for timber looks set to continue to rise. The industry itself is looking ready to meet this demand with sawmills in the American and Canadian area currently running at about 80 per cent of practical capacity.

Industrial capabilities are one side of the story but the forests themselves also need to keep up with this rise in demand, making the importance of growing sustainable forests increasingly clear.