Lumber prices are on the rise in the US in anticipation of growing demand for wood following Hurricane Katrina’s devastating impact on southern states.
Widespread rebuilding work is expected across Flordia, Tennessee, Mississippi, Louisiana and Alabama after Katrina caused up to US$25bn in damage.
Lumber futures (an obligation to buy or sell a commodity at a set price by a specific date) for November delivery have risen twice by US$10, the maximum daily increase allowed by the Chicago Mercantile Exchange, since the storm hit on August 29.
Prices had reached US$285.80 per thousand board feet by the beginning of September and could, according to analysts, reach as high as US$330 by the end of 2005.
Lumber futures have dropped 33% in the past year because supply has exceeded construction demand.
