US producers have courted offshore markets since 2009 as an alternative to the deep slump in demand at home causing exports to rise.
Now prices in the US have gained more than a third in six months and according to the Wood Resource Quarterly gone up 60% since late 2011.
Export prices are now sharply higher, including at the lower end a 12% hike in Western red cedar for the European market, newsletter Random Lengths International reported.
Despite a third consecutive annual increase in lumber available in the US, supplies this year have failed to meet demand.
North American lumber production was up 6.9% last year, but that lagged behind the 28.1% increase in housing starts. Overall lumber available to the market, comprising domestic production and imports, excluding lumber exported, increased 8.2% last year.
The shortfall was difficult to make up as log supplies to mills was constrained by a robust log export market, particularly to China. Wood Resource Quarterly said Douglas fir sawlog prices reached a five-year high at the end of last year.
Analysts said that many producers have reduced lumber for export and raised prices aggressively on available stock. Random Lengths’ composite US price index rose 37% from its October average to US$428 in march, its highest level since 2004.
Several export markets were subject to price increase of 20-28%. Western red cedar for Europe had one of the lowest increases of 12%. Strong demand for mouldings in the US also tightened supplies of southern pine available for Europe.
