Lumber traders in an attempt to keep their freight cost under control have started using Capesize vessels. Capesize vessels are the largest class of bulk ships and typically carry cargo such as iron ore, coal, and grain. The name Capesize comes from the fact that they are so large that they cannot pass through the Panama Canal and thus have to sail around the Cape of Good hope to sail between the Atlantic and Pacific Ocean.
Wood Markets News
Weyerhaeuser Devotes All Logging Resources to Wildfire Salvage Operations in Oregon
Weyerhaeuser continues to concentrate all of its logging resources into fire salvage. As an example, the Weyerhaeuser Santiam Lumber Mill is busily producing lumber from logs salvaged from the wildfires last summer — the Holiday Farm Fire that burned along the McKenzie River and into the Mohawk and upper Calapooia areas, and the Santiam Canyon fires, which damaged timber in the Snow Peak area.
Northern Ontario Lumber Producers Struggle to Keep Up with Surging Demand
Northern Ontario lumber producers are struggling to keep up with surging demand as lumber prices in North America are reaching all-time highs. After a difficult year in 2020 for sawmill operations, leading some producers in Northern Ontario to ask for government assistance to remain in operations, the industry experienced a real turn around thanks to rising prices.
Canadian Consumer Price Index Rises at a Faster Pace Year-Over-Year in February
Statistics Canada (StatsCan) is reporting the Canadian Consumer Price Index (CPI) rose at a faster pace year-over-year in February (+1.1%) than in January (+1.0%). The increase in gasoline prices (+5.0%) led to consumer price growth in February. Excluding gasoline, the CPI rose 1.0% in February, down from a 1.3% increase in January.
Mortgage Applications Decrease -2.2% in the Week Ending March 12, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey, for the week ending March 12, 2021, the Market Composite Index — a measure of mortgage loan application volume — decreased -2.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -2% compared with the previous week.
Housing Starts and Permits Down but Housing Completions were Up in February 2021
The U.S. Census Bureau has reported that privately‐owned housing starts in February were at a seasonally adjusted annual rate (SAAR) of 1,421,000. This is -10.3% below the revised January estimate of 1,584,000 and is -9.3% below the February 2020 rate. Single-family housing starts in February were at a rate of 1,040,000; and this is -8.5% below the revised January figure.
Mortgage Applications for New Home Purchases Drop -9% between January and February 2021
The latest Builder Application Survey (BAS) from the Mortgage Bankers Association (MBA) for February 2021 shows mortgage applications for new home purchases increased 9.2% year-over-year (February 2020 – February 2021).
Canadian Wood Product Sales Jump 9.1% in January Driven by Higher Sales Volume and Prices
Statistics Canada (StatsCan) is reporting that manufacturing sales rose 3.1% to $56.2 billion in January, following a 1.3% gain in December. Sales were up in 16 of 21 industries, driven mainly by the wood products, computer and electronic products, and primary metal industries.
State by State Construction Sector Employment Analysis from January’s Nonfarm Payroll Report
Further analysis of the Bureau of Labor Statistics January nonfarm payroll report, provided by the National Association of Home Builders, reveals that nonfarm payroll increased in 36 states in January compared to December, while 14 states and D.C. reported job losses.
Builder Confidence Declines in March but Remains Elevated
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reports that builder confidence in the market for newly built single-family homes declined 2-point in March, after a 1-point increase in February, to a reading of 82.