USA: housing holds the key
With a steadily-growing economy and a high level of housing starts, which bucked the trend which normally sees a slow down in February, demand for timber in the US market remains buoyant
”The main issue is still a shortage of houses,” said Bob Jank, President, Södra USA Inc. “Despite interest rates and the cost of living rising in general, mortgages remain relatively affordable, and with an estimated shortage of four million family homes in the US, the demand for timber looks unlikely to soften any time soon. In addition, the Congress-approved Infrastructure Law to rebuild roads, bridges and railways will create demand for timber, not least for concrete forming.”
The supply side remains tight as Jank explains: “British Columbia is not in a position to crank up supply because of the continuing devastation cause by the pine beetle. Railcar and truck-driver shortages have not helped either. While the increasing volume of southern yellow pine is partially accepted as an alternative for construction, it is heavier to transport and harder nail and drill, so spruce such as that which Södra supplies will always be the preference. European timber is an essential part of the picture in the USA and Södra’s commitment to this market is appreciated, as is the quality of timber it produces.”
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