US Lumber Prices To Rise As Increased US House Building Offsets Effect Of Decreased Chinese Construction

An increase in U.S. housing construction is expected to raise significantly the price of lumber by the end of the year, offsetting the depressing effect China's recent downturn in property investment has had on lumber demand. Capital Economics, a London-based financial research consultancy group, expects prices to increase almost 30 percent, from $313 per 1,000 board feet to $400, by the end of 2014. The group attributes the expected rise to increased demand in the U.S. housing market.