Lumber supply reduce and prices rise

                        Lumber supply reduce and prices rise

Analysts forecast that in the United States under the impetus of the growing demand of domestic market, there are about 929,000 new homes and apartments will be built this year , is almost 120% of the number in 2012, it has helped USA create demand of sawing logs and lumber

Facing each other across the sea, China has strong wood import demand.the U.S. forest department says, Alaska, Washington state, Oregon and northern California log export in the third quarter of 2012 exports to China increased by about 9% to 62% .At present, China's timber import highest record was in 2011, analysts predict that to 2015 China will need to import about 1.82 million cubic meters of wood, timber imports increased by 70%

However, due to some north American wood factory has shut down in response to the recession and the development of forest diseases and insect pests in some Asian countries, lead to fewer global wood supply. Supply decrease, rising demand lead to lumber prices rise to new peak in eight years.

Lumber in North America market, SPF (such as spruce, pine and fir) cork used for house construction, each need average about 14000 board feet of timber. At the same time, the timber price has climbed by 45% since mid-march 282 dollars last year to about $408 per thousand board feet.Compared to the same time , the directional particieboard price has rise doubled, from $215 to $430 per thousand square foot.

Now lumber inventory level remains at 50-year lows, it is never seen since 2004 . Analysts think like 12 years great bull market in gold, the timber industry is in the golden wood super cycle.