Lumber

[Supa Dexta]

- Tariffs imposed on lumber
- Lumber prices have jumped dramatically
- Lumber yards stogged full

But yet some can't follow the chain of events.

 

[True Grit Farms]

I'd sure like to see the timber grower make a little more.

 

[ddd75]

i like SYP better, seems a lot stronger.


6x6x16 was 45 or 50 here last summer, they are 56.00 now.

 

[hdrockn]

I bought some 1x6s at Lowes last winter that were labeled from Finland. Whaaaaat?

 

[greybeard]

- Tariffs imposed on lumber
- Lumber prices have jumped dramatically
- Lumber yards stogged full

But yet some can't follow the chain of events.

The lumber yard I mentioned near me, has been full for months. It's been so dry the loggers can get into just about anywhere here now and work, and the developers around here have had huge swaths of land cleared in the last 12 months.

 

[Dave]

Log prices are up pretty good here. The highest they have been in years. And they were up long before all the tariff talk started. Lots of timber ground shut down to logging because of the environmentalists. This caused a lot of mills to shut down. Supply and demand. If demand goes up but supply is limited price will go up. Everyday I see trains with lots of cars hauling lumber headed east. But with three quarters of the mills in Washington and Oregon no longer there.......

 

[Bestoutwest]

MAGA :banana:

How is making me pay more for the same amount of product MAGA?

 

[Jogeephus]

I buy a lot of lumber. It's up anywhere from 25-40% here depending on what you are after.

For instance a 6x6x16 treated post. A year ago I could buy it for $32. Today it costs me $59.

The landowner ain't making the extra. And the builders supply ain't making much of the extra. The sawmills are knocking it down. And I mean knocking it down.

Sawmills have been making record profits for the last couple years now. Just a shame that after NAFTA most of these mills are now owned by foreiners - Canadians, Germans and Russians. I have no animosity toward the Canadians mind you because if a government made such a stupid trade deal with me I'd exploit it to the fullest myself. That's just capitalism and idiots never do well in a capitalistic society which is why the government just needs to stick to protecting our borders instead of meddling in our business.

 

[jltrent]

It seems like everything has went up again. For the lumber, Red Oak logs are dirt cheap, yet the finished product it very high. Somebody making good money in between. Barns use to go up around here regularly and now most are getting in bad shape and what little lumber it takes to repair the barn are almost not worth the cost.

 

[greybeard]

Log prices are up pretty good here. The highest they have been in years. And they were up long before all the tariff talk started. Lots of timber ground shut down to logging because of the environmentalists. This caused a lot of mills to shut down. Supply and demand. If demand goes up but supply is limited price will go up. Everyday I see trains with lots of cars hauling lumber headed east. But with three quarters of the mills in Washington and Oregon no longer there.......

Same here, but not just the environmentalists. The supply of good straight pine and marketable hardwood (trees) is nowhere near what it used to be a few decades ago or even a few years ago..
Used to be 3-5 mills here within 20 miles of each other. Pretty much down to two now as GP closed the plywood/veneer plant in town back in 2010.
Dunno if this will work or not...google earth pic from last fall. There's more lumber in there now than then.
CLW Mill

I don't know who actually owns them.. CLW Inc, but that mill has been here under the same name for as long as I remember.

 

[jehosofat]

MAGA :banana:

How is making me pay more for the same amount of product MAGA?

Everyrhing ain't about you. Maybe the loggers, truckers, sawmills, and stores are making more profit and better wages.

 

[Bestoutwest]

MAGA :banana:

How is making me pay more for the same amount of product MAGA?

Everyrhing ain't about you. Maybe the loggers, truckers, sawmills, and stores are making more profit and better wages.

Isn't that the truth. And you're right, the loggers, truckers, etc might make some more money, but then what about the contractors, truckers, day laborers, general contractors, electricians, plumbers, cement guys, etc. when folks can't afford to build new houses? Also, please explain how that when a store pays 25% more for wood, and then sells it for 25% higher that they're making more money? And how are they making more money when folks can't afford to buy anything?

 

[greybeard]

Also, please explain how that when a store pays 25% more for wood, and then sells it for 25% higher that they're making money?

Simple. Their profit margin hasn't changed one bit. If they were making $ before the wholesale price increase, and increased their resale price accordingly, they're making exactly the same profit as before.

If you were buying apples for 3 cents each, then selling apples for a nickle each, you were making 2 cents per apple profit. If your supplier raised the price you pay for apples to 8 cents each, and you raise your price to customers a dime per apple, you are still making 2 cents profit per apple.

People that need lumber are like people that need food (or anything else) . They are going to pay the price for it, regardless of whether it rises or drops..or remains the same.

 

[jehosofat]

BoW, surely your not complaining about our economy. Best it's been in a long, long time.

 

[Bestoutwest]

Also, please explain how that when a store pays 25% more for wood, and then sells it for 25% higher that they're making money?

Simple. Their profit margin hasn't changed one bit. If they were making $ before the wholesale price increase, and increased their resale price accordingly, they're making exactly the same profit as before.

If you were buying apples for 3 cents each, then selling apples for a nickle each, you were making 2 cents per apple profit. If your supplier raised the price you pay for apples to 8 cents each, and you raise your price to customers a dime per apple, you are still making 2 cents profit per apple.

People that need lumber are like people that need food (or anything else) . They are going to pay the price for it, regardless of whether it rises or drops..or remains the same.

I meant to have included "more" in that sentence. Yes, the profit margin remains the same, but less people are going to be able to spend 25% more for projects. Even if it's a necessary repair, they may do the bare minimum.

 

[M-5]

Also, please explain how that when a store pays 25% more for wood, and then sells it for 25% higher that they're making money?

Simple. Their profit margin hasn't changed one bit. If they were making $ before the wholesale price increase, and increased their resale price accordingly, they're making exactly the same profit as before.

If you were buying apples for 3 cents each, then selling apples for a nickle each, you were making 2 cents per apple profit. If your supplier raised the price you pay for apples to 8 cents each, and you raise your price to customers a dime per apple, you are still making 2 cents profit per apple.

People that need lumber are like people that need food (or anything else) . They are going to pay the price for it, regardless of whether it rises or drops..or remains the same.

I meant to have included "more" in that sentence. Yes, the profit margin remains the same, but less people are going to be able to spend 25% more for projects. Even if it's a necessary repair, they may do the bare minimum.

that is their fault . When each segment does better from the demand even the little gal at the gas station makes more money because she has to work more hours. If she decides a tattoo and cigs are more important than putting the extra away that's her fault. it is simple economics .

 

[MtnCows93]

my point is we should use our own yellowpine to replace canada spruce, we have a surplus of it and it would be cheap lumber

 

[ddd75]

How is making me pay more for the same amount of product MAGA?

Everyrhing ain't about you. Maybe the loggers, truckers, sawmills, and stores are making more profit and better wages.

Isn't that the truth. And you're right, the loggers, truckers, etc might make some more money, but then what about the contractors, truckers, day laborers, general contractors, electricians, plumbers, cement guys, etc. when folks can't afford to build new houses? Also, please explain how that when a store pays 25% more for wood, and then sells it for 25% higher that they're making more money? And how are they making more money when folks can't afford to buy anything?

pretty funny.. they raised metal roof panels from 1.60 / ft to 2.60 / ft.

yet I've taken in 30 tons of steel the last few weeks and the metal price was 185/t it has dropped to 165/t

so the steel is cheaper.. but TARIFFS... so that means they have a 'reason' to raise prices.