Lumber Industry Has No Interest In New Mills As They Reap Rewards Of Record Prices
Lumber Industry Has No Interest In New Mills As They Reap Rewards Of Record Prices The problem with the North American lumber industry is that supply is controlled by just a few firms that can easily manipulate prices. For instance, WSJ reports lumber mills are in no rush to bring on additional capacity as they reap the rewards of consumers paying four times the average price. North America''s sawmills, such as Weyerhaeuser Co., West Fraser Timber Co., Canfor Corporation, Interfor Corporation, and PotlatchDeltic, are in no hurry to boost new capacity as they rake in the cash as lumber prices soar. Consumers have been on the opposite side of the stick, and soaring lumber prices added nearly $36k to the cost of building a new home in less than one year. Lumber executives told WSJ they "aren''t racing out to build new mills" as they are contempt with elevated prices boosting their quarterly net incomes. Usually, when commodity prices soar, new supplies flood the market, but that doesn''t seem to be the case here.
Lumber Industry Has No Interest In New Mills As They Reap Rewards Of Record Prices
Lumber Industry Has No Interest In New Mills As They Reap Rewards Of Record Prices The problem with the North American lumber industry is that supply is controlled by just a few firms that can easily manipulate prices. For instance, WSJ reports lumber mills are in no rush to bring on additional capacity as they reap the rewards of consumers paying four times the average price. North America''s sawmills, such as Weyerhaeuser Co., West Fraser Timber Co., Canfor Corporation, Interfor Corporation, and PotlatchDeltic, are in no hurry to boost new capacity as they rake in the cash as lumber prices soar. Consumers have been on the opposite side of the stick, and soaring lumber prices added nearly $36k to the cost of building a new home in less than one year. Lumber executives told WSJ they "aren''t racing out to build new mills" as they are contempt with elevated prices boosting their quarterly net incomes. Usually, when commodity prices soar, new supplies flood the market, but that doesn''t seem to be the case here.