Lumber Prices Lifted by Mill Curtailments, Lower Inflation
Lumber futures ran into their daily price-increase limit for the first time since April, reversing a slide that had knocked wood prices down to prepandemic levels. Futures gained $49, or 8.9%, to hit $601.80 per thousand board feet.
Behind the big move is West Fraser Timber Co.'s announcement late Tuesday that it would permanently curtail about 170 million board feet of annual production at two mills in British Columbia, along with about 85 million square feet of plywood from a third facility in the region. North America’s largest lumber producer blamed the reductions on difficulties procuring timber there and transportation constraints.