Happy New Year to you!
For the last commodity report reflecting on 2021, we wanted to cover the recent pricing changes and also reflect on the past year.
Prices this week were generally up, with pressure-treated staying relatively flat – though I’ve heard they expect an increase of $50/MBF next week. Our composite average increased 5.9% week over week, continuing the upward trend but at least slowing a bit. The snow has given us a bit of a respite for product availability, but the flip side is that we can’t move any material, so the two essentially offset each other.
This year pretty well takes the cake for commodity price volatility. The rapid increase at the start of the year peaked in June, followed by an even more rapid fall in prices, some stability, and then some sharp increases. When we look at our composite average price 12 months ago, prices are up just shy of 20%.
It’s hard to know what the next year will look like, but I would not anticipate a super stable commodity market until well into the year, if at all. We’re starting to receive price increases from other categories, such as fiber cement siding and cabinets. Most tend to be in the 10% range, with some less and some more. Availability is still an issue on most of these product lines and will undoubtedly slow down the process of homebuilding.
Thankfully the market is still quite favorable for home builders as the need is still dramatically greater than the supply of homes. Balancing the challenging schedule side of shortages and long lead times will likely continue to be one of the biggest challenges in 2022.
In closing, I want to thank each of you for your business, loyalty, and patience as we have collectively faced the many challenges of the pandemic era. We know it has not been easy, and we will continue to work to the best of our abilities to keep you supplied, informed, and moving forward in your business of building our community. It has been our pleasure to serve you, and we look forward to our continued partnership in 2022.
Danny Steiger│President & CEO
Lumber Traders Inc.
Angeles Millwork & Lumber Co.
Hartnagel Building Supply
As always, this e-mail content is not financial advice. Simply data to help you be better prepared. Our goal is to create more informed builders and homeowners to properly price and budget for future jobs and projects.
We will continue to update you on changes in the commodity market. Displayed above are the latest graphs.
Angeles Millwork and Hartnagel Building Supply see our customers as business partners, and their success is, in turn, ours. That is why every month, we will publish a commodity pricing chart on our Facebook page and in our monthly newsletter. The chart will represent a correlation of average pricing trends over the past year of Douglas Fir 2×4, Pressure Treated 2×4 Lumber, 7/16” OSB, and ½” CDX.