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
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
LeBlanc says he plans to run in next election, under Trudeau's leadership
Cabinet minister Dominic LeBlanc says he plans to run in the next election as a candidate under Prime Minister Justin Trudeau's leadership, amid questions about his rumoured interest in succeeding his longtime friend for the top job.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
Judge says 'no evidence fully supports' case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
U.S. vetoes a widely supported UN resolution backing full membership for Palestine
The United States has vetoed a widely backed UN resolution that would have paved the way for full United Nations membership for the state of Palestine.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.