Forest fires drive lumber prices higher
August 20, 2017
The price of building lumber continues to inch up following the introduction of higher U.S. duties on Canadian softwood exports—and the effect from B.C. forest fires.
As of August 4, the price of a 2x4 eastern spruce was $595 per one thousand board feet (MBF), compared to $592 MBF a year earlier.
The price of wood panels was $400 MBF as of August 4, compared to $372 MBF a year earlier, reports Natural Resources Canada.
Fires across B.C. have covered more than 38,000 hectares (93,900 acres) and shut down some sawmills and logging plays.
Norbord Inc., the world's largest maker of oriented strand board (OSB), which supplies about 5.6 per cent of OSB panels used in Canada, is among the B.C. operations shut down.
Wood prices could rise as high as 6 per cent if B.C. forestry operations remain shut for weeks, according to Bank of Montreal analyst Ketan Mamtora.