The U.S. Department of Labor is reporting that an additional 184,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, December 4, 2021 — a decrease of 43,000 from the previous week’s revised level. This is the lowest level for initial claims since September 6, 1969, when it was 182,000.
Wood Markets News
New Zealand Forestry Operators Dealing With Fallout From “Perfect Storm”
China is New Zealand’s largest overseas market for logs. Currently, China accounts for 70-90% of all log exports. Earlier this year, log prices were at near record high levels in New Zealand. In November, the price of logs had sunk to lows not seen since late 2015. The lower prices have resulted in a significantly reduced number of logs heading to ports.
Holmen Wood Products Investing SEK 400 Million in Upgrades to Iggesund Sawmill
Holmen has announced they are investing 400 million SEK in their Iggesund Sawmill. The investment will increase production at the sawmill by 20% and will enable the mill to switch from lower grade joinery spruce to construction timber in both spruce and pine. This will increase the value added and improve the market mix by increasing the share sold to Scandinavian builders’ merchants.
Home Builders “Put the Pedal to the Metal” to Meet 1.35 Million New Home Shortfall
“We just saw the first full year of above-average construction since the mid-2000s housing crash. This isn’t a new boom cycle of new construction so much as it’s an attempt to get even from the last bust. There is still a long way to go to catch up from more than a decade of slow construction, and some markets have longer to go than others.”
Construction Job Openings Continued to Grow in October
In October, the number of unfilled construction jobs increased to 410,000. According to the National Association of Home Builders (NAHB) this is the highest level in the history of the data service, which dates back to late 2000. Hiring in the construction remained strong, rising to a 5.0% rate.
Mortgage Applications Increased in Week Ending December 3, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending December 3, 2021, the Market Composite Index (a measure of mortgage loan application volume) increased 2.0% percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 45% compared with the previous week.
Job Openings and Labor Turnover Summary Released for October 2021
On Wednesday (12-8-21), the U.S. Bureau of Labor Statistics (BLS) reported the Job Openings and Labor Turnover Summary (JOLTS) for October 2021. According to the JOLTS report, as of the last day in October, the number of job openings increased to 11.0 million (+431,000). The Job opening rate was little changed at 6.9%. The number of hires was little changed at 6.5 million.
Resolute Forest Products Expands Operations at Two Arkansas Sawmills
With the acquisition of two sawmills in 2020 — in El Dorado and Glenwood, Arkansas — Resolute Forest Products has invested through a combined capital program over $28 million and added more than 160 new jobs over the past two years.
West Fraser Completes Acquisition of OSB Mill in U.S. South
West Fraser Timber Co. Ltd. announced today (12-6-21) that it has completed the acquisition of the Georgia Pacific oriented strandboard (OSB) mill located near Allendale, South Carolina. The original news release of for purchase was issued on October 26, 2021.
Fannie Mae Home Purchase Sentiment Index® Decreases for November
Fannie Mae today (12-7-21) released their Home Purchase Sentiment Index® (HPSI) for November. The HPSI for November decreased -0.8 points to a reading of 74.7, as consumers expressed only contrasting views of homebuying and home-selling conditions but also their greatest economic pessimism in 10-years.