Thread: USA --> Who is Getting Rich Off of High Lumber Prices?!?

Hi WP

My wife's family are involved in timber & building supplies. There is currently a bit of a shortage of scantling timber, which in eastern Australia is predominately radiatia, particularly in the longer lengths around 4.2 - 6m. Mainly due to an increase in demand (renos, new buildings etc) and reduced supply due to last years bushfires which knocked about the pine plantations, but exacerbated by a timber shortage in other countries (due to covid ?? .. dunno). Also affects some manufactured pine products such as LVL type beams which are becoming scarcer on the supply side.

In many ways it is supply -vs- demand. When products are in short supply due to high demand the price increases.

Trade journals have been talking about the scantling timber shortage for a few months now.

Might be good times if you own a steel frame manufacturing business?

Regards
Twosheds

WP

I have only watched the first minute or so of the video, but I think I know where it is going and it the same old story. To illustrate this, I would draw your attention to two different industries: Namely those of the meat industry and electricity. The fundamental issue is that the raw material is not the expensive aspect. The expense is in the distribution, preparation and final retailing. Of course there are some other factors too, not the least being the supply and demand, but the original supplier rarely seems to benefit from the fluctuations in final price.

I will have to watch the rest of the video at a later date and I hope I don't have to eat my hat: I am quickly running out of hats.

Regards
Paul

Ive no skin in the game, or opinion. I simply thought it was a well reasoned and researched youtube video.

Thought others, perhaps a USA audience, would be interested.

I doubt the same assumptions fit here as there seems to be a HUGE historical finger-on-the-scale in the USA. Free market economy? Hahahahahaaaaa! Worse than the commies!

According to my local timber supplier the majority of framing timber used on the east coast is imported mainly from Europe
Our prices are are being pushed up because the USA is in a housing boom and are offering 10% more than what we were paying for it so it is being directed their way