North American wood products market set to soar10 January 2013
With the return of a demand-driven wood products market in 2012 - due to rapidly increasing housing starts in the US - it is now forecast that lumber and panel prices will move to new highs in 2013 and record highs for lumber in 2014.
A North American "super-cycle" has been predicted by Wood Markets since 2008 as a result of emerging supply-side constraints (mainly on forests and logs) as well as changing demand dynamics, but the global financial crisis that started in late 2008 and an unusually slow US housing market recovery have delayed this event until 2012.
With the expectation of strong growth in US housing starts over the next five years, combined with a better balance in the housing inventory and a recovering economy, the US supply chain is expected to become overwhelmed at times during the next five years, allowing wood products prices to soar.
These findings have been released by Wood Markets in its 8th edition report: Wood Markets 2013 - The Solid Wood Products Outlook - 2013 to 2017.