After sharp decline, lumber prices rising again due to B.C. wildfires
Lumber prices have been on a wild ride over the last few months, and the wildfires currently burning across British Columbia have started to contribute to that volatility.
It's not that the fires are burning up logs that might otherwise be headed to market. Rather, wildfires have closed rail lines that mills use to transport their products from the Interior to the Port of Vancouver for export, explained John Innes, dean of UBC's Faculty of Forestry.
"The mills all have fairly large inventories of logs right now, and they could be exporting into the U.S. if they could, but the problem that they've got is actually the transport," Innes told CTV News Vancouver.
Both CP and CN rail lines have been affected by the wildfires, Innes said, adding that the transportation issues have reduced supply and caused prices to tick up in recent days.
The price of 1,000 board-feet of lumber had been falling steadily since hitting a peak of $1,686 on May 7. As of July 15, it had dropped to just $490, according to Innes.
This week, however, the price has begun to rise again, hitting $648.
"That's a fairly significant increase since the 15th of July," Innes said.
The UBC professor said prices "went pretty crazy" in May, and aren't likely to reach those heights again as a result of the current supply issues.
"Prices have since tumbled because the supply caught up with the demand," Innes said. "Now, there is a fear that over the next month or two, there will be difficulties in maintaining that supply. So that's why prices have gone back up again."
For consumers looking to buy lumber for a home renovation or a similar project, Innes recommends waiting a little while.
"There's always a little bit of a disconnect between the retail price and the wholesale price," he said.
Many retailers still have high-priced products in stock that they purchased a few weeks or months ago, he explained, adding that the recent decline in wholesale prices hasn't been fully passed on to consumers yet.
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
B.C. judge orders shared dog custody for exes who both 'clearly love Stella'
In a first-of-its-kind ruling, a B.C. judge has awarded a former couple joint custody of their dog.
Saskatoon police to search landfill for remains of woman missing since 2020
Saskatoon police say they will begin searching the city’s landfill for the remains of Mackenzie Lee Trottier, who has been missing for more than three years.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.