Lumber and Panel Market Update: Where We’re at Today and How We Got Here

Since the beginning of the New Year, US lumber and panel prices have trended up after falling from the record-breaking highs of 2021. Historically, the beginning of the year tends to be a less volatile time in the market. As Spring approaches and temperatures begin to warm, demand typically increases with the beginning of building season. As we’re all aware, the last two years have thrown whatever normal trends we’ve seen in the past out the window. Several factors have contributed to where we are today and what we expect to see here in the coming months.

Contributing Factors

The recent climb in the market began around the beginning of December, as many mill workers were sidelined due to the spike in the Omicron variant. Many mills experienced capacity issues, and severe storms hit the Western US and Canada. This only added to the challenges we’ve seen across rail and trucking. Transportation has only gotten worse in the last several weeks, and the events surrounding truckers at the Canadian border only look to add to the problem. A lot of the material used in our region is brought down from Canada, and the fewer truckers available to haul loads to the states will only add to the uptick in the market.

Low-Grade Lumber Supply

These events have contributed to a tighter low-grade lumber supply. For those unfamiliar, low-grade lumber and panels are typically used in industrial packaging solutions. For example, the custom pallets, crates, and skids we produce for our customers. Knowing this, we’re working diligently with our suppliers and leveraging our strong corporate backing to make sure we can protect your supply chain and continue to be an asset to you and your team.

Staying True To Our Customers

We will never run you out of wood fiber, however, we’re not immune to the prices we’re seeing today. As partners, we’ll be with you on the way up, and when the market corrects, we’ll be with you on the way back down. We value your business and understand the critical role we play in your supply chains. If you have any questions, please reach out to your Packnet Account Manager, who can provide you with whatever information you need to keep you and your team moving forward.