Tag Archives: lumber

Weyerhaeuser vs. Rayonier: Which Lumber Stock is a Better Buy?

Author: StockNews
This post originally appeared on Stock Market News

Weyerhaeuser vs. Rayonier: Which Lumber Stock is a Better Buy?© Reuters. Weyerhaeuser vs. Rayonier: Which Lumber Stock is a Better Buy?

Lumber has recently hit an all-time high due to soaring demand driven by industrial and residential activities. We believe Weyerhaeuser (WY) and Rayonier (NYSE:) are well-positioned to capitalize on rising lumber prices. But let’s find out which of these stocks is a better buy now.Weyerhaeuser Company (NYSE:) manufactures and sells forest products. The company operates through three main business segments—timberlands, wood products, and real estate, energy & natural resources. Its wood products segment delivers lumber, structural panels, engineered wood products and complementary building products for residential, industrial and light commercial applications.

Rayonier Inc . (RYN) is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. The company operates through seven segments—Southern Timber, Pacific Northwest Timber, New Zealand Timber, Timber Funds, Real Estate, Trading, Corporate and Other.

The U.S. lumber market has been witnessing a soaring demand since the economy began recovering. Given low inventories, rising demand from industrial and residential activities has caused lumber prices to spike on April 19 to an all-time high of $ 1,328.50 per thousand board feet. The booming housing market, the country’s anticipated infrastructure developments and home improvement trends should keep driving lumber prices. Indeed, the global reclaimed lumber market size is expected to grow at a 4.6% CAGR to reach $ 70.37 billion by 2028.

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US lumber prices skyrocket 250% as Covid drives home-buying demand higher

Author: RT
This post originally appeared on RT Business News

Prices for lumber managed to grab the headlines after an unprecedented sharp increase which currently threatens housing affordability across the United States.

“Lumber prices have skyrocketed nearly 250% since April 2020. This price spike has caused the price of an average new single-family home to increase by more than $ 24,000,” reported the National Association of Home Builders.

On Monday, the May futures contract price per thousand board feet of two-by-fours reportedly surged from $ 48 to $ 1,420. The moonshot reportedly caused lumber trading to halt for the day.

“The market is in trouble. It could spiral out of control in the next few months,” Dustin Jalbert, senior economist at Fastmarkets RISI said as quoted by Fortune.

According to the expert, the backlogged supply is not able to catch up with the demand that keeps growing after the season of home building and home renovation were opened.

Apart from steadily increasing home construction, the price spike is attributed to the supply chain that is getting disrupted by Covid-19-related lumber yard shutdowns, Gary Poulos, lumber division president for Mill Creek Lumber & Supply told one of the local media outlets.

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The official added that the pandemic-related transportation issues exacerbated the surge in prices. Moreover, extreme winter weather also caused a shutdown of Gulf Coast refineries, causing an unavoidable shortage of other building supplies.

Lumber prices are expected to grow for quite some time amid soaring lumber futures contracts, including those for November, Stinson Dean, CEO of Deacon Lumber, told Fortune.

Prices are expected to correct only if demand cools down, which is not likely to occur until the home building and renovation seasons are over.

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