The Consumer Group for Fair Gas Prices has started tracking the price of lumber and found that some of the market pressures point to the ongoing softwood lumber dispute.
The spot price of lumber was $337 CAD on April 1, 2020, but by May 7 of 2021, that had shot up to $2,030 CAD.
George Murphy says he started tracking lumber prices last year when he—like many others did during the pandemic—considered building a new shed. That project had to be put on hold due to rising costs.
When Murphy went seeking answers as to what market forces were influencing the price, there was little information readily available. He says he eventually found many “choke points” caused by a shortage of lumber entering the high-demand US market.
According to Murphy, one of those choke points is the ongoing softwood lumber dispute between the US and Canada. It’s one of the largest and longest trade disputes between the two nations. That lack of supply and increased demand caused prices south of the border to rise, and “it hit everybody,” Murphy says.
Murphy has noticed that prices are starting to retreat somewhat, caused by talks of shortages affecting the US housing market.
Spot lumber finished the day at $1264 US, down again. That’s a tad over $1500 Canadian. Prices down a good $500 over the last week.
— George "Wash Your Hands" Murphy (@GeorgeMurphyOil) May 19, 2021
