Construction lumber prices

Willemjm

Willem
Corporate Member
Where is this going to end?

Last timeI purchased a sheet of OSB I paid between $8-$12 a sheet. The next shipment into Lowe’s will be $40 a sheet!
 

zdorsch

Zach
Senior User
Yeah, it’s ridiculous. I had been planning to rebuild my sun porch since right around the start of Covid and had to heavily modify my budget (at Lear there was little change in shingles prices!).
 

tarheelz

Dave
Corporate Member
To track things:
 

tri4sale

Daniel
Corporate Member
Where is this going to end?

Last timeI purchased a sheet of OSB I paid between $8-$12 a sheet. The next shipment into Lowe’s will be $40 a sheet!
It's not going to end, once the market has adapted to higher prices, there is no incentive for the seller to reduce prices. When gas hit $4/gallon everyone started charge gas surcharges and raising prices. When gas hit $2/gallon those extra charges didn't go away.
 

Chris C

Chris
Senior User
I'm installing 1x6 pine shiplap in the shop as we speak... for that very reason. I just bought 560 boards for $2.90 each. I'll need a few more but not a whole bundle and guy has plenty. They are culls and dealer said 10-15% loss. Based on what I've seen I'd say he's correct. But Lowe's wants $10/board so I can eat 15% all day long considering the price difference.

No way I'm paying $30+ for osb...


Where is this going to end?

Last timeI purchased a sheet of OSB I paid between $8-$12 a sheet. The next shipment into Lowe’s will be $40 a sheet!
 

Rwe2156

DrBob
Senior User
A contractor friend of mine thinks its a combination of inventory depletion due to COVID, and increased demand. The construction industry is on fire. Interest rates are low, but with all the printed money floating around, it can't stay that way for long.

He can't give a quote good for more than 30 days. He said he's going to ZIP system, right now its cheaper when you take away house wrap and labor for that.

What was a $200 house 3 years ago is $250 today.
 

tvrgeek

Scott
User
Around here, there is a boom. But gad, it was not long ago a stud was 98 cents. Back then, they looked like a stud. Now the look like a cork screw.

Has the price of steel framing gone up? Just wondering if there will be market shifts. A while back they were selling OSB studs. Have not seen them in a while. Is there a shift from OSB and wrap to pre-coated OSB and tape?
 

Danny Batchelor

Danny
User
Every year I go to Brooks Contracting, in Goldston, and get a utility trailer load of compost to spread around my foundation plants and for my raised bed garden. This year I was charged $40. Last year I paid $32 for the same trailer load. When I complained about the price, I was told it was because gas price increase and county tax increase.
We did suffer an increase gas price because of the cold snap in Texas and Chatham County did increase a tax by 1/2 of 1 percent. Neither would justify a 25% increase.
 

junquecol

Bruce
User
Every year I go to Brooks Contracting, in Goldston, and get a utility trailer load of compost to spread around my foundation plants and for my raised bed garden. This year I was charged $40. Last year I paid $32 for the same trailer load. When I complained about the price, I was told it was because gas price increase and county tax increase.
We did suffer an increase gas price because of the cold snap in Texas and Chatham County did increase a tax by 1/2 of 1 percent. Neither would justify a 25% increase.
Has anyone seen any signs limiting the amount of OSB you can purchase - NO! That means there is no shortage, just capitalism at work, AKA price gouging. Timber delivered to the mills is bringing the same price as it was ten years ago. The only thing competing with the chips for the making of OSB is pellet mills feeding power plants in Europe. Europe consider pellets to be carbon neutral. Go into eastern NC and look at the vast areas that have been stripped by clear cutting. Many of them hardwood forests, replaced by pine trees. Very little wildlife exists in a pine forest. So much for "green energy."
 

tarheelz

Dave
Corporate Member
Conspiracy theories aside, it's plain 'ole supply and demand. Fires, tariffs, and COVID have limited supply (at all levels of the chain) while COVID, the 2018 tax reform, stimulus funds, and record-low interest rates have fueled construction across all sectors.

It will sort out but it will take time. (And it's not just wood. Lots of construction materials have supply issues.)
 

Oka

Board of Directors, Vice President
Casey
Staff member
Corporate Member
YUP ...... Things are just coming back online, factories are recalling their labor. So assuming the promise to remove the tariffs and things improve 3-6 months material will come down. That said, do not expect it to go back to 2-3 bucks a stud.

Currently, Steel is up over 2018 prices by about 23 cents a lb. But, it is currently is lower than the high point. So, I guess that is good. Insulation, tile, cement, pumper, roofing, all are up 20-30%.........Hard to explain to a customer that their material price escalations are contractually excluded. Now the cost for my current project is up 3 million....... so much joy being the bearer of unwelcome news............Not
 

Oka

Board of Directors, Vice President
Casey
Staff member
Corporate Member
Yeah, and their Cedar is poor quality to boot.......
 

petebucy4638

New User
Pete
A contractor friend of mine thinks its a combination of inventory depletion due to COVID, and increased demand. The construction industry is on fire. Interest rates are low, but with all the printed money floating around, it can't stay that way for long.

He can't give a quote good for more than 30 days. He said he's going to ZIP system, right now its cheaper when you take away house wrap and labor for that.

What was a $200 house 3 years ago is $250 today.
The construction market is overheated at the moment and lumber producers are dealing with Covid-19 and government enhanced unemployment labor problems as well. Prices will come back into line once the housing bubble bursts.
 
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