That’s how The Province describes a combination of factors contributing to resurgent lumber prices. The ‘perfect storm’ reported here refers to evidence of gradual recovery in the U.S. housing market at the same time as demand from China has been ramping up, layered now with expectations of increased demand for wood products to rebuild the devastation caused by Storm Sandy.
Of course what needs to be added to the mix, which the article omits, are concerns over available shrinking fibre supply to satisfy that demand. Certainly, the U.S. housing crash in 2008 saw many skilled workers cross over to other, more prosperous heavy industries such as oil and gas. However, worries reportedly over “massive labour shortages as mills and logging camps get back to work” seem to fly in the face of more pervasive concerns surrounding dwindling timber supply.
No doubt the many factors at play represent a story of both opportunity and challenge. This lumber trader-blogger has been invited by CBC Radio The Early Edition to share in a live discussion on the story this Tuesday morning at 6:50 a.m. PST. Hope you tune in!