Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic. Many homeowners were stuck at home, unable to vacation.
To start off, it’s best to mention that lumber prices as a whole have increased. Plywood is heavy. The process of making plywood is going to add to the overall cost that we pay for it. A couple more ideas to examine are: construction levels, price vs, availability of fiber, natural disasters, and stability.
Plywood and lumber prices overall experienced an extreme spike in the early part of 2021, peaking in early May and dropping quickly to levels approaching but not yet matching pre-pandemic prices in July.
Our answer is that a Home Depot spokeswoman told us the company could not verify whether the photo is legitimate, and would only say that the chain store’s lumber pricing is based on commodities pricing. But there are indications that the price of plywood has risen in the range of 252%.
While researching we ran into the question “What is the average price of plywood?”.
The price of plywood varies significantly depending on the size and thickness. A 4X8 sheet can range from $7 to as much as $60. As an example, for a 1/4 inches thick board, you may pay $8, while an 11/32 inches thick panel will cost around $18. You can get a better idea through our chart below.
Moreover, how do natural disasters affect plywood prices?
There are two ways in which natural disasters can increase the price that people must pay for plywood. Let’s first look at the times when there is a hurricane. Prior to a hurricane, plywood is bought quickly to try and board up windows and doors and keep the winds and the rains out.
Why is the price of lumber so high?
Wood is fairly abundant, in North America, especially in the southern forests. Modern mills are very efficient at turning logs into 2x4s and sheets of plywood. Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic.
When we were researching we ran into the inquiry “Why are wood prices so high?”.
Wood prices are so high these days because of increased shortage of lumber. This shortage of lumber has increased its demand to more than 80%. Failure of replantation at forests might be a cause.
There are three primary reasons why lumber prices were much higher than normal. There are fewer lumber mills. The first reason has developed over many years: a consolidation in the number of sawmills to refine the raw product. In fact, employment at sawmills is down 30% from 20 years ago. Sawmills are capital intensive endeavors.
Can plywood get exposed to water?
Although you can’t let plywood get exposed to water, overall, it is one of the stronger types of lumber that you can use. There are some marine-grade plywood products, but those are only going to be even higher in price. As you have likely seen in years past, when there is a hurricane, many people will purchase plywood to board up their windows.