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
BREAKING Ontario Provincial Police arrest 64 suspects in child sexual exploitation investigation
Ontario Provincial Police say 64 suspects are facing a combined 348 charges in connection with a series of child sexual exploitation investigations that spanned the province.
AstraZeneca says it will withdraw COVID-19 vaccine globally as demand dips
AstraZeneca said on Tuesday it had initiated the worldwide withdrawal of its COVID-19 vaccine due to a 'surplus of available updated vaccines' since the pandemic.
Toronto police seek suspect vehicle after security guard shot outside Drake's mansion
Toronto police are seeking help from the public as they continue to investigate a shooting that seriously injured a security guard outside rapper Drake's mansion.
'Ozempic babies': Reports of surprise pregnancies raise new questions about weight loss drugs
Numerous women have shared stories of 'Ozempic babies' on social media. But the joy some experience in discovering pregnancies may come with anxiety about the unknowns.
OPINION What King Charles' schedule being too 'full' to accommodate son suggests
Prince Harry, the Duke of Sussex, has made headlines with his recent arrival in the U.K., this time to celebrate all things Invictus. But upon the prince landing in the U.K., we have already had confirmation that King Charles III won't have time to see his youngest son during his brief visit.
Seafood, eat food: Calgary Stampede releases Midway menu
The Calgary Stampede has released its menu of sweet, salty and spicy treats available on the Midway for the Greatest Outdoor Show on Earth.
Boy Scouts of America is rebranding. Here's why they've changed their name
After more than a century, Boy Scouts of America is rebranding as Scouting America, another major shakeup for an organization that once proudly resisted change.
World's record-breaking hot temperature streak stretches through April
The world just experienced its hottest April on record, extending an 11-month streak in which every month set a temperature record, the European Union's climate change monitoring service said on Wednesday.
Most of Canada to receive emergency alert test today
The federal government will test its capacity to issue emergency alerts today, with the exception of Ontario, where the test will take place on May 15.