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
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.
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.
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
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.
"Violin playing and Woodworking are similar, it takes plenty of money,
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.
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.
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:
a few show the wiley presto-log (or is that particle board) in the wild...
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.
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
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.
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...
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.
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
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.
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