Timber prices going up

[jasonB]

While placing an order today with South London Hardwoods for £900 worth of Iroko and discussing another quote they gave me for £2000 of PAR Cedar, Sean who I usually deal with said due to the state of the Dollar & Euro that we are likely to see timber prices going up a lot in the near future.

So if you are planing to be ordering timber in the near future best not hang around :!:

Jason

 

[OPJ]

Thanks for the heads-up.

 

[mr]

Imported or all timber?

Cheers Mike

 

[jasonB]

Imported, both from the US & Europe, not sure on native

Jason

 

[Steve Maskery]

The two are not independent of each other. If imported timber goes up, native will too. If UK timber becomes relatively cheaper, more people will buy it, demand will rise and so the price will go up. It's just normal economics.

Reasons like the cost of energy to convert and dry and transport it will be given, and all those will play a part, but it will still be a simple case of supply and demand.

The world is reaching a point where demand for ALL natural resources is beginning to outstrip the supply that is available. It's not just energy. Timber is in short supply because China is building Beijing (it's a big place) and we've flattened Iraq, so that has to be rebuilt. That requires concrete and concrete requires plywood. Metals and other mined products are the same, there simply isn't enough to go round the whole world at the same rate that we are used to enjoying.

We're all doomed, Mr Mainwaring, we're doomed.

S

 

[74extiger]

Recovery from disasters, especially in a place such as China, has an immediate effect on materials prices around the world. The earthquakes there last week sent the commodities markets into a tizzy.

Just the new construction in China caused cement prices to double in California between 2005 and 2007. Everytime these summer hurricanes tear through Florida, plywood prices explode. They use it not only to rebuild, but to cover all the broken window panes.

Gary Curtis

 

[BradNaylor]

due to the state of the Dollar that we are likely to see timber prices going up a lot in the near future.

Yes, I remember well how when the dollar was falling like a stone those prices for American timber got cheaper by the week.

NOT!!

:twisted:

 

[Steve Maskery]

Yes, another scary aspect to all this is that the dollar is so week, and many commodities are priced in dollars. If the dollar recovers, prices will go up even more for us, even if the world market price doesn't change.

We're all doomed.

 

[OPJ]

They use it not only to rebuild, but to cover all the broken window panes.

Gary Curtis

Have they not hear of OSB??? :shock:

I know we Brits aren't always ones to lead by example, but by paying only half of what what we'd normally pay for a sheet of ply, I think we've got this one right. Plus, it's made from 'waste' material. :wink:

 

[tnimble]

If nothing changes in the way resources are in demand (and often wasted) there will be a time where we have to resort to the even higher prices resources like lunar fig and red martian cedar.