Lumber Prices Reach an All-Time High

May 10th, 2021

After approving this month’s newsletter, I sent the following to our team.



Todays post is from Ronald D. Southard, CEO at SafeSourcing Inc

After approving this month’s newsletter, I sent the following to our team.

The services that SafeSourcing provides are so important to our customers. Many companies do not understand how much help SafeSourcing can provide. In our May newsletter Gayl Southard our Vice President of Administration points out the ever-changing business landscape that the pandemic has caused.

Two specific examples are the price of Lumber and the price of Chlorine. In some cases, lumber is up 50% with no reduction in pricing on the near-term horizon. The question this begs for companies and individuals; is why pay a 50% premium when you might only need to pay 25% if that. If buyers sourced their lumber in a different way and recognized that cost mitigation is just as important as savings versus your old pricing. If you know companies or individuals whose costs are going up and out of control for any product or service, please tell them about SafeSourcing.

The following is an excerpt from our May Newsletter being distributed this week. that is produced by Gayl Southard, Vice President of Administration at SafeSourcing. Our circulation for the newsletter is about 6.5K subscribers.

The price of lumber is generating profits for sawmills; however, do-it-yourselfers, renters, and home buyers are footing the bill.  The record three-month profits in 2021 are even fatter than last year.  These companies have emerged as the biggest growing businesses during this wood boom.    Plywood and lumber are flying off the shelves at hardware stores and are being bid up by home builders.  “Lumber futures delivery later this month ended Monday at $1,575.60 per thousand board feet, an all-time high and more than four times the typical price this time of year.  Futures have risen by the daily maximum allowed by the Chicago Mercantile Exchange during nine of April’s 21 trading sessions.”1

The first of May the futures shot up $75.50, the biggest jump in a single day.  Mill owners say they are backed up with orders into June.  Builders are reporting high home sales.  When COVID hit last year, many sawmills sent their worker’s home.  Forty percent of North America’s sawmills came to grinding halt.  Now things have taken a dramatic turn in the opposite direction.

1 Ryan December, WSJ, 5/4/2021

If you would like to learn more as to how SafeSourcing can help reduce your costs immediately or would like to subscribe to our Monthly Newsletter, please contact a SafeSourcing customer servicers account manager.


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