Lumber Prices Continue to Fall

Export fees and quotas will be re-imposed in July because of the declining lumber prices since April. Fees and quotas will likely be imposed in August, as lower lumber prices are expected to continue. Courtesy of Global Gold International

Random Lengths composite framing lumber price index continued its fall from its peak in late April of $367 per 1,000 board feet. For the week ending June 4, the index was down to $291, its lowest level since the end of January. But that was still more than $40 higher than late December prices and $88 higher than a year earlier.

The higher prices earlier this year brought about reduction in export fees and higher quotas for Canadian lumber exports to the U.S., under the terms of the Softwood Lumber Agreement, in May. All fees and quotas - with the exception of a 10 percent export fee imposed on select provinces for previously violating the agreement - were eliminated this month as a result of higher prices in March and April.

The run up in lumber prices through April, along with increases in other materials such as gypsum wallboard and copper products, added to the cost of construction, explaining some of the increase in the April residential value put in place numbers. The good news is this could help make construction affordable, passing along the savings to the customers.

- Courtesy of NAHB