Why wood prices are going up

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Saw a piece on TV last night where the price of wood (ply/OSB etc) is going sky high because the Fed Gov is buying huge amounts to do some rebuilding in Iraq. They showed a guy here (Albuquerque) who was adding a room, old cost $14k, new cost with wood prices going up, $20k. They interviewed a contractor who also verified the huge price increases in the wood he's purchasing to build homes. Mind you, NOBODY has said anything about any sort of shortage (which there will not be). They said the 4x8 sheet of what they called 'wafer board' that cost $7 last month was at $20 now and still climbing. I may have to hold off building the storage shed I'd planned on doing. WTF is wrong with this picture.
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In rec.woodworking

We're the only nation that blows up countries then puts them back together again. Kuwait, Bosnia, Yugoslavia, Afghanistan, Iraq and now sights are being set on N. Korea, Iran, take your pick.. Wouldn't it be a lot less trouble to not blow them up in the first place?
As for plywood, the demand in Iraq is NOT the reason for the increase according to an article posted her a few weeks ago. Search the archives.
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I think we are still trying to recreate the success we had with the Marshall plan. I bet there are people making money in Vietnam, just not us "poor" folks. We did create a market for Marlboros there. I assume our long range plan in Iraq is to create a consumer culture so we can get our oil money back. How much we spend for oil is not as important to the fat cats as where THEY spend the money we ship over there. Unfortunately we don't make much here to sell them.
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Less trouble - dunno 'bout that - but sure as hell wouldn't give us the Test Platform we need for these new weapons...
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Builder online article (or was it JLC) gave an overview. It is not actually rebuilding Iraq. Iraq is more like Florida, there isn't much you want to build outa wood if you can help it. The wood is actually supplying the military. No shortage? Well yes and know. Short here but no shortage of stock. I could go into the part about tree huggers and spotted owls putting 1,000s of people out of work over the past 10 years.
--
Young Carpenter

"Violin playing and Woodworking are similar, it takes plenty of money,
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Bruce wrote:

I was simply relaying what our local news said. IMO its BS as I don't forsee the Gov ever buying enough wood here to ship over there such that it would increase prices 3+ fold. I agree with Leon, Oil Industry pricing, aka creative financing and scalping.
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Wood prices in general including softwood lumber, plywood, osb and other panel products have gone up since the start of the year for many reasons. One is that the exhange rate with the Canadian dollar has gone from $.60 to $.73 since the first of the year. This coupled with the counter-vailing duty has slowed the flow of lumber products into the US from Canada. The same is true for imported lumber form Europe where the Euro has strengthened from roughly par with the US dollar to about $1.13. Two, the southeast timber industry has experienced a very wet spring and summer which has affected log supply to certain mills. Third, is this summers fire season. Many mills in the Inland Rocky Mountains on both sides of the border have been shut out of the woods since mid July. In southern British Columbia this combination has forced many mills to shut down or curtail. The net effect is a dip in supply which may continue for some time. Sawmills in the inland northwest are now able to get back to logging now that we have had some rain and snow, but they will be playing catch-up in their log decks between now and breakup next Spring. As far as price fixing in the industry, I wish it were possible. I work for a sawmill in Northwest Montana. We sell all of our product to the wholesale market as do most other sawmills except for those that sell directly to the big box stores (i.e. the Borg). Our only control over the price of our final product is the ability to tell the wholesaler "NO" if we feel the price is too low and you can only do that for so long. There are some large national wholesale companies that try to influence the market by timing purchases and sales but the idea that the large "evil corporations" are gouging the markets does not hold water. I work for a small family owned sawmill so I have no affiliation to the larger "evil corporations". In fact it has been my experience that most big company sawmills usually kill any good market by dumping lumber at the end of every month to keep the cash flow numbers up and the quarterly stock prices propped up. If there has been any price gouging it has been at the retail level. The average WWPA framing lumber index (the price that mills receive for their lumber) has been hovering near 20 year lows for the last several years, yet I have not seen any such reduction in prices at the local lumber yards. My two cents worth.
Jeff Clausen
--
To reply you need to dig the sliver out.



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On Fri, 19 Sep 2003 21:55:19 -0600, Jeff Clausen wrote:

It apparently isn't because we don't have any more timber. The first few pics in this album show some excess on the way to Japan last month:
http://www.winterburn.net/photo/index.php?folder=/2003%20Trip/Harstene /
a few show the wiley presto-log (or is that particle board) in the wild...
-Doug
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major snippage

local
Away, troll...don't come around here and go spouting off with your facts. Most people here like it better when you just say it's due to the Bush administration's lack of a national lumber policy or that probably Haliburton is controlling the price of wood pulp on the Board of Trade. We don't want to hear about exchange rates and forest fires.
todd
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todd wrote:

I think it's because of SUVs. SUVs are polluting the whole world and running over everybody, so there is nobody left to chop trees down.
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reasons.
last
facts.
We
When I started building our new house, I told my wife it was going to be worth a half a million bucks when i finished it. Little did I know.
--
JC from Gnat Flats, Texas
Home of the Notso OK Corral
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The wood industry has adopted the Oil industry way of pricing.
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On Thu, 18 Sep 2003 03:33:06 +0000, Leon wrote:

We had the tip of the gasoline price thing here in Phoenix, supposedly because of a pipeline rupture between Tucson and Phoenix (the gas comes from Texas via pipeline to Tucson). 3/4ths of the Phoenix supply comes from California via another pipeline (owned by the same people as the Tucson/Phoenix pipeline).
Took a month to drive to Washington State, and what to my bewildered eyes should appear but hugely escalating gasoline prices because of a pipeline rupture in Arizona? I keep trying to understand the connection, especially since everything I read says no supply problem, but still searching for an answer.
-Doug
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I live in Houston,,,Premium hit $1.84 a gallon, and a very large percentage of the nations refineries for gasoline are here.. Never was a shortage here either...
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On Thu, 18 Sep 2003 04:16:08 GMT, "Leon"

hell up here in the twin cities area we have three major pipeline heads, and two refineries fed straight outta the gulf. . . never had a pipeline bust open and yet, strangely every time one "breaks" somewhere else, or there is a major blackout, or a fly lands on a beanstalk in the mediterranean, , , we suck on it at the pumps. price is finally below 1.60 here from labor day...
Traves
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Heck, we maxed at about $1.89 for low grade, premium was something around $2.15. I think it's still about $1.75 for 87 octane.
I'm all for free markets, but it definitely makes you ponder things like "price fixing" and "collusion" when every different gas station has prices within $0.03 of each other and all change them at exactly the same time. Doesn't really smell like market competition to me.
Even so, we still pay a crapload less than just about everywhere in the world for gas, so it could be worse.
Mike

percentage
here
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snipped-for-privacy@eat.my.shorts says...

I just heard the Thief-in-Chief mention 87 Billion dollars. . .And most everyone else said that was just starters! It is worse!
Kim
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On Thu, 18 Sep 2003 08:00:06 -0700, Kim Whitmyre wrote:

I heard the Congress mention 400 billion dollars for drugs for everyone - including Bill Gates - And that is just for starters. It is _much_ worse.
-Doug
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snipped-for-privacy@yahoo.com says...

Rather have such for Americans than fork it over for imperial ambitions. . .
Kim
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On Thu, 18 Sep 2003 12:56:05 -0700, Kim Whitmyre wrote:

I'd rather not as I have perfectly good private drug coverage that will go the way of the dodo bird if this passes, and with government efficiency to replace it :-( Seems rather strange to provide taxpayer paid benefits to people who have already provided those benefits for themselves. I'd much rather pay the 400 billion to fight and defeat those who would harm us in their own lairs rather than waiting for them to come to us as we know they will if we do nothing.
-Doug
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