An update for the lumber prices and market in June 2022.
Ever since the pandemic started, the prices of raw construction materials have never been stable. That said, even in the current market price of lumber, it’s almost impossible to predict the movement of its supply relative to its prices.
Lumber markets are highly volatile, and the pandemic made them even sharper. So, although in 2021, lumber prices went lower, there is no telling if they will go this way again because lumber prices in 2022 have been a roller coaster ride in the first quarter.
So, if you have any plans to construct a wood deck in your household or complete a lumber project, check price updates to prepare your finances accurately.
What is the current status of lumber prices in 2022 by the numbers?
Currently, lumber is at a high price of $1,000 per thousand board feet. This spot price is relatively playing around in constant. However, economists’ market predictions favor slight changes in its price for the next few months. The calculation is now set to expect at least a down price of $935.60.
Although plausible, this prediction is hard to lean on, and you are not encouraged to bet on it for good. Current conditions of the pandemic are still causing some disruption to log supplies, primarily if the collections do not originate in the United States.
Other than log supplies, lumber prices continue to increase for several factors. These factors are as follows:
Other Factors Affecting Lumber Prices 2022 as per economists from the National Association of Home Builders
Fuel Costs
Preparing the cost for lumber doesn’t only involve the building materials. It also includes transportation costs, mainly driven by the use of fuel. Considering the continuous scarcity of fuel availability due to the conflict between Russia and Ukraine, the transportation costs are high.
The capitalization of transportation costs is an accounting principle that lumber markets face. So, as long as the fuel scarcity persists, expect a higher price for lumber.
Supply Chain issues
One of the most extensive lumber exporters in the world is Russia. However, with the sanctions made by the US government towards Russia, expect exports to be little to none in the coming months.
The implication of this event is simple: there will be a significant decrease in lumber imported. Hence, the supply becomes lower. However, the demands are at a constant level or even higher at times, which later on results in higher prices.
Taxation and Tariffs
In November 2021, the US Department of Commerce announced a consequential decision that impacted the lumber industry. According to the department, the tariffs on softwood lumber from Canada would double.
· Previous Tariffs: 9%
· New Tariffs: 17.9%
Higher tariffs imply many things, but one thing is for sure: foreign exporters will face loses.
Trucking Constraints
Currently, there is a shortage of flatbed trucks in the country. Not to mention labor shortages to operate these transports and deliver them to key places.
Flatbed trucks are the ideal and much-preferred mode of transportation for lumber. It is cost-effective and cost-efficient as well. This is especially true for distant origin locations.
With the trucking constraints, the logistical management of lumber availability is paralyzed. The fewer the trucks, the higher the rent and transportation costs.
Get Your Lumber Martials at an Affordable Price from Peninsular Lumber
If you’re ready to pursue your lumber endeavors and looking for a lumber company in Tampa, Peninsular Lumber Co. is a great choice and offers quality home lumber. we’ve served the Tampa Bay area for over 75 years, providing the lumber and materials needed for custom home construction, DIY home improvements, and other lumber-related projects.
Call now at 813-875-8805 or visit our lumber yard in Tampa Bay today.
