Archive for April, 2010

Lumber Rises to Highest Price Since 2006 on Economic Outlook

Posted in News on April 15th, 2010 by Mario Espineira – 1 Comment

[Source: www.businessweek.com, April 15, 2010]

By Tony C. Dreibus

Lumber rose to the highest price in more than three years as signs of rebounds in the U.S. economy and home-building industry fueled speculation that demand for wood products will increase.

U.S. factory production rose 0.9 percent in March, the Federal Reserve said today. Homebuilder bonds have climbed to levels reached before the global credit freeze, buoyed by investor confidence that the economy is strong enough to prevent defaults. Lumber prices that plunged in January 2009 to the lowest level since at least 1986 have jumped 67 percent in the past year.

“The industry is optimistic that demand will go up,” said Hakan Ekstrom, the president of Wood Resources in Bothell, Washington. “The general economic situation looks better than we’ve seen in a long time. That helped trigger lumber prices.”

Lumber futures for July delivery rose $6.60, or 2.1 percent, to $315.60 per 1,000 board feet on the Chicago Mercantile Exchange, after touching $318.10, the highest price for a most-active contract since May 19, 2006.

Suppliers of construction materials, including retailers Lowe’s Cos. and Home Depot Inc., may try to stock up on lumber to avoid shortages, Eckstrom said.

“Some buyers and end-users are nervous they won’t be able to get the volume they need as quickly as they need it,” Eckstrom said. “The general positive news about the economy has certainly helped.”

Pending Home Sales Show Healthy Gain, Hint at Spring Surge

Posted in News on April 15th, 2010 by Mario Espineira – Be the first to comment

(National Association of Realtors) Pending home sales rose in February, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of Realtors.

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SFI vs. FSC

Posted in News on April 9th, 2010 by Mario Espineira – Be the first to comment

by John D. Wagner in the April LBM Journal

If you ever want to elicit groans from dealers, just mention FSC (Forest Stewardship Council). Dealers pay fees to obtain the FSC "Chain of Custody" certificate, and then they pay more fees to renew that certification. Now, if you think the dealer groans about FSC are loud, just mention FSC to builders. Since USGBC’s LEED standard accepts only FSC-certified lumber, builders are forced to buy it, often at a premium, to achieve the LEED lumber point. Typically, builders overbuy FSC lumber, mistakenly believing it’s required throughout the entire LEED job. Not true; see below.

Do you get a greener wood with FSC than with other reputable wood certification systems? Frankly, no. That’s one reason the SFI (Sustainable Forest Initiative) is fighting so hard for LEED recognition. The core of the problem is that USGBC considers SFI a so-called "industry-sponsored program"-and in the eyes of USGBC that somehow compromises SFI’s ability to protect forests. At press time, Building-Green.com reports that the new LEED wood certification draft language would allow for "multiple levels of compliance, and assigns half-credit, full-credit, or double-credit to programs based on the degree of compliance." FSC of course gets access to the full point. Non-FSC standards would settle for less.

Read the Full Article at LBM Journal

Call me or e-mail me for any further information needed on the above.

Mario R. Espiñeira, Jr
Deco Truss Company, Inc.
13980 SW 252 Street
Miami, Florida 33032

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