Among 11 sub-categories in non-residential construction, six showed monthly increases with the largest coming from natural gas:
The primary causes to the price increase in lumber, according to the National Association of Home Builders, include:
- Mills closed in the spring due to stay-at-home orders and social distancing measures enacted by State and local governments.
- Mills that remained operational anticipated a large drop in demand and substantially decreased capacity utilization.
- Producers did not anticipate the massive uptick in demand from do-it-yourself (DIY) homeowners and big box retailers during the pandemic.
- Housing weathered the COVID-19 crisis much better than most anticipated.
- DIY demand has not abated much as States reopen and construction demand has far surpassed lumber mills’ projections.