Lumber Prices Expected To Increase In The Aftermath Of Hurricane Irma
Many have seen the price of gas increase in the aftermath of Hurricane Harvey. As plans to rebuild get underway, products like lumber and plywood have already began seeing a surge across the US as well.
"The reality is when a hurricane hits or is intended to hit landfall there is a big surge in lumber prices due to speculative buying," Mike Bertrand, owner of Lloyd Lumber says.
Bertrand says to prepare for a tilt in supply and demand, lumber dealers in the US arrange in speculation buying.
"It's a global market so supply and demand will dictate if a bunch of supplies are going to Texas or Florida. That will affect the pricing we pay up here," he says.
Pricing is determined during the aftermath of the event. So far Bertrand says he's seen an uptick of about 10 to 15 percent in plywood and lumber products. And that number could continue to rise.
"If Irma does hit Florida hard we'll see significant and longer lasting blips in the market," Bertrand says.
As of now, prices will remain a waiting game until the impact of both Hurricane Harvey and Irma are evaluated.