4 ms·

From what I've heard, this is mostly a function of... 1) Lumber mills shutting down because of weak demand and tariffs. https://www.woodworkingnetwork.com/new

From what I've heard, this is mostly a function of... 1) Lumber mills shutting down because of weak demand and tariffs. https://www.woodworkingnetwork.com/news/woodworking-industry-news/two-new-canadian-lumber-mills-shut-down-hundreds-more-laid https://www.woodworkingnetwork.com/news/woodworking-industry... 2) Curtailment of remaining production because of coronavirus https://www.woodworkingnetwork.com/news/canadian-news/coronavirus-forces-curtailments-three-major-canadian-lumber-mills https://www.woodworkingnetwork.com/news/canadian-news/corona... 3) The housing market going a little nutty https://www.vox.com/22264268/covid-19-housing-insecurity-housing-prices-mortgage-rates-pandemic-zoning-supply-demand https://www.vox.com/22264268/covid-19-housing-insecurity-hou... 4) I imagine record low interest rates also contributed

xiphias2 5y ago
So basically people in the US voted for higher prices, so that they can keep their job that can't compete on international markets, and they got what they voted for.
ortusdux 5y ago
Also: - WFH people fleeing high COL cities, buying fixer-uppers, and paying whatever to renovate - Rolling covid shut-downs of companies that make wood products like OSB glue or treated wood chemicals - Freight costs - Trailing effects from a bad fire season and the Texas ice storm repairs - Tariff repercussions - Russia is planning to stop exporting raw logs next year. They are about 12% of the worlds supply. - Speculators profiting off the volatility
- jdhn 5y ago
  >- Russia is planning to stop exporting raw logs next year. They are about 12% of the worlds supply. Why would they do this? Is this a way of getting back at the US for sanctions? Seems like they're shooting themselves in the foot.
  - dragonwriter 5y ago
    > Why would they do this? Raw logs are an input; it drives up the price for external industries dependent on lumber and drives them down for domestic industries, sacrificing raw material exports for more competitive intermediate and finished goods exports. Since for the most part economic development depends on having exports as far toward the finished goods end of the raw material to finished goods spectrum, its not an insane strategy if you can deal with the short-term dislocations. Shifting competitive advantage is harder than leaning in to your existing competitive advantage, but sometimes your existing competitive advantage is a long-term loser.
kokanator 5y ago
Does it feel like we have squeezed a critical part of our infrastructure here allowing it to close down or go bankrupt? This could have lasting affects for decades.
- cma 5y ago
  When something goes bankrupt they don't necessarily send in the prohibition-like police with axes to bust up all the machines and stuff or something.

xiphias2 5y ago

So basically people in the US voted for higher prices, so that they can keep their job that can't compete on international markets, and they got what they voted for.

ortusdux 5y ago

Also: - WFH people fleeing high COL cities, buying fixer-uppers, and paying whatever to renovate - Rolling covid shut-downs of companies that make wood products like OSB glue or treated wood chemicals - Freight costs - Trailing effects from a bad fire season and the Texas ice storm repairs - Tariff repercussions - Russia is planning to stop exporting raw logs next year. They are about 12% of the worlds supply. - Speculators profiting off the volatility

jdhn 5y ago
>- Russia is planning to stop exporting raw logs next year. They are about 12% of the worlds supply. Why would they do this? Is this a way of getting back at the US for sanctions? Seems like they're shooting themselves in the foot.
- dragonwriter 5y ago
  > Why would they do this? Raw logs are an input; it drives up the price for external industries dependent on lumber and drives them down for domestic industries, sacrificing raw material exports for more competitive intermediate and finished goods exports. Since for the most part economic development depends on having exports as far toward the finished goods end of the raw material to finished goods spectrum, its not an insane strategy if you can deal with the short-term dislocations. Shifting competitive advantage is harder than leaning in to your existing competitive advantage, but sometimes your existing competitive advantage is a long-term loser.

kokanator 5y ago

Does it feel like we have squeezed a critical part of our infrastructure here allowing it to close down or go bankrupt? This could have lasting affects for decades.

cma 5y ago
When something goes bankrupt they don't necessarily send in the prohibition-like police with axes to bust up all the machines and stuff or something.