US forestry and wood markets gain strength

According to the latest report from International Wood Markets Group entitled “Wood Markets 2010 – the five-year outlook for North American solid wood products”,  there is now a growing price rise momentum in forestry end products.  The report  suggests sweeping prices are being driven by increased demand and subsequent surges are predicted to ” take the lumber market by surprise”.   Housing start up projects are very much the foundation of the demand rises and theses start ups are forecast to increase in number from 575,000 to approximately 700,000 by the 2010. This will be followed by an even greater increase when the ” single digit “ family home demand drives demand to above 1. 5million homes by 2013.

The figures continue to suggest further strength in forestry investments due to the  demand for lumber with US and Canadian sawmill operating capacities forecast to increase from an average of  50% in 2009 to  a staggering 90% by 2013.

“The prospects of higher prices will be welcomed by all players in the North American lumber sector” commented Wood Markets President Russell Taylor.