The price of lumber has been rallying in the United States since the start of the COVID-19 pandemic. Between November 2021 and January 2022, lumber prices doubled to beyond the $1,000 per thousand board feet mark. This has occurred in varying degrees because of flooding in British Columbia that caused supply chain disruptions and an increase in tariffs on Canadian lumber imports.
As of February 10, lumber prices had risen nearly 30% for the month, consistent with a broader rally in global commodities as economies reopen. Furthermore, the weakening U.S. dollar is heightening price pressures. Lumber prices are expected to trade at $1,017.47 per thousand board feet by the end of this quarter, rising to $1,427.98 in 12 months.
