Rising interest rates and inflation cool down the housing market, which has caused lumber prices to fall.
Pricing & Supply
Jerry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga., issued a statement supporting legislation that would ban timber imports from Russia and Belarus.
Canfor Corp. plans to reduce operating schedules at its Western Canadian sawmills effective April 4, 2022, due to the cumulative effects of the unprecedented global supply chain crisis that has been ongoing for several months.
US housing starts in February were up, indeed reaching highs not seen since mid-2006, however building permits were down compared to the previous month.
Since Russia invaded Ukraine, lumber prices have jumped 14% to $1,452, putting them just below the all-time peak of $1,711 per thousand board feet recorded last May, according to a report in Market Insider and other publications.
Russia’s invasion of Ukraine is likely to impact global trade in the coming months, and it is likely that many investments projects in the forest products manufacturing sector in Russia will grind to a halt as the growing list of sanctions and financial transaction restrictions take effect.
Rayonier has purchased 66,800 acres of forestry in Texas and Georgia from Nuveen Natural Capital for $124.2 million, before transaction costs.