Interfor Corporation announced today, Thursday, May 27, 2021, that it has reached an agreement with Georgia-Pacific Wood Products LLC and GP Wood Products LLC (collectively Georgia-Pacific) to acquire four of its sawmill operations located in Bay Springs, Mississippi, Fayette Alabama, DeQuincy, Louisiana and Philomath, Oregon. The total purchase price of US $375 million, which includes working capital, will be funded entirely from cash on hand.
Wood Markets News
Pending Homes Sales Index Drops -4.4% in April
The National Association of Realtors® (NAR) has reported their Pending Homes Sales Index (PHSI) — which is based on signed real estate contracts, not actual closings, for existing single-family homes, condos, and co-ops — declined -4.4% in April 2021 to a reading of 106.2. The PHSI has now declined three out of the past four months.
Segezha Group Announces Plan to Consolidate CJSC Novoyeniseiskiy Wood Chemical Complex
Segezha Group, a Russian integrated forest products company, which operates forestry, sawmilling, plywood manufacturing and cross-laminated timber production, has announced its plans to consolidate 100% of CJSC Novoyeniseiskiy Wood Chemical Complex.
Real Gross Domestic Product for Q1 2020 Reported at 6.4% in “Second” Estimate
The Bureau of Economic Analysis (BEA) released today (5-27-21) its “second” estimate of real gross domestic product (GDP) for Q1 if 2020. BEA reports it at an annual rate of 6.4%. This is unchanged from their initial “advance” estimate released last month.
Mortgage Rates Drop Below 3% in the Week Ending May 27, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending May 27, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.95% with an average 0.7 point, down from last week when it averaged 3.00%. A year ago, at this time, the 30-year FRM averaged 3.15%.
Weekly Jobless Claims Decline in the Week Ending May 22, 2021
The U.S. Department of Labor is reporting that an additional 406,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, May 22, 2021 — a decrease of 38,000 from the previous week’s unrevised level.
Sawmill Capacity at Levels Not Seen Since the Great Recession but Still Can’t Keep Up with Demand
According to the Federal Reserve Board, North American softwood sawmill capacity is at its greatest level since the Great Recession. Capacity increased by 1.4 billion board feet in the last year. And the vast majority of that increased capacity — 1.1 million board feet — is coming from the Southern U.S.
Delmarva Lumber Company Opens in Willards, MD and Hopes to Help All Businesses Along the Lumber Supply Chain
A ribbon cutting ceremony held today (5-26-21) marked the opening of Delmarva Lumber Company. Delmarva is located on former site of the Cropper Bros. Lumber Company in Willards, MD, which was closed in 2018. Rickards says the mill has over one million board feet of timber ready to start being shipped.
Two Year Streak of Increasing Housing Affordability Comes to an Ends in March 2021
According to the latest affordability report from First American Financial Corporation and its Chief Economist Mark Fleming, housing affordability on an annual basis declined in March for the first time since January 2019, signaling the end of a more than two-year streak of rising affordability.
Median Age Of U.S. Construction Workforce
Analysis of the most recent 2019 American Community Survey (ACS) data provided by the National Association of Home Builders (NAHB) reveals that the median age of construction workers is 41, the same as typical worker in the national labor force.