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
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.
What a urologist wants you to know about male infertility
When opposite sex couples are trying and failing to get pregnant, the attention often focuses on the woman. That’s not always the case.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Made-in-Newfoundland vodka claims top prize at worldwide competition
A Newfoundland-made vodka has been named one of the world’s best by judges at this year’s World Vodka Awards.