On Thursday, the price of lumber rose at its quickest pace in more than a year as wildfires in Western Canada are impacting the industry. Future lumber contracts jumped by more than 10 per cent, crossing new thresholds. Late Thursday a contract for 1,000 board-feet of lumber was worth $647 US, $60 more than the previous day.
The spike in price is due to lumber companies in B.C. and other places scaling back their operations because of the wildfires. Canfor a Vancouver-based lumber company said it would produce roughly 115 million fewer board-feet of product in this quarter. This is because the fires have damaged rail networks on which they depend for transportation.
Lumber followed suit with many other industries, the pandemic slowed down the business at the start, and then demand unexpectedly exploded. The main culprit is people wanting to do more home renovations. In May, Lumber hit an all-time high of more than $1,600 US per 1,000 board-feet.
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