No Profanity *** No Flaming *** No Advertising *** No Anti Trappers *** No Politics
No Non-Target Catches *** No Links to Anti-trapping Sites *** No Avoiding Profanity Filter


Home~Trap Talk~ADC Forum~Trap Shed~Wilderness Trapping~International Trappers~Fur Handling

Auction Forum~Trapper Tips~Links~Gallery~Basic Sets~Convention Calendar~Chat~ Trap Collecting Forum

Trapper's Humor~Strictly Trapping~Fur Buyers Directory~Mugshots~Fur Sale Directory~Wildcrafting~The Pen and Quill

Trapper's Tales~Words From The Past~Legends~Archives~Kids Forum~Lure Formulators Forum~ Fermenter's Forum


~~~ Dobbins' Products Catalog ~~~


Minnesota Trapline Products
Please support our sponsor for the Trappers Talk Page - Minnesota Trapline Products


Print Thread
Hop To
Page 5 of 5 1 2 3 4 5
Re: What is making lumber prices go up [Re: gregh] #7110128
12/29/20 12:12 AM
12/29/20 12:12 AM
Joined: Feb 2017
Posts: 1,125
Priest River, Idaho USA
S
SundanceMtnMan Offline
trapper
SundanceMtnMan  Offline
trapper
S

Joined: Feb 2017
Posts: 1,125
Priest River, Idaho USA
When it gets too low they curtail hours, if it goes lower they shut us down. I have been told to stay home only once in 35 years. That is in the same mill through three different owners. In 2008/2009 we came very close to mothballing the mill but managed to pull through. I feel very lucky several mills that were here when I was growing up are gone.


"They Say Nothing is Impossible,
But, I Do Nothing Every Day."
Re: What is making lumber prices go up [Re: SundanceMtnMan] #7110531
12/29/20 11:40 AM
12/29/20 11:40 AM
Joined: Mar 2007
Posts: 31,724
McGrath, AK
W
white17 Offline

"General (Mr.Sunshine) Washington"
white17  Offline

"General (Mr.Sunshine) Washington"
W

Joined: Mar 2007
Posts: 31,724
McGrath, AK
Originally Posted by SundanceMtnMan
White17
I normally don't argue with people but I believe you are wrong on lumber profit margins. I would guess the mill I work at(family owned) the profit margin since May has been well over 300 %. Our timber prices are just now starting to rise while lumber has been sky high since May. As an example lumber was selling for approximately $300 per thousand board feet in March and went to $1000 per thousand board feet in August. There was no increase in expenses during that time. Our mill cuts 500,000 board feet per 10 hour shift, assuming they were breaking even at $300(they were making money), they were making $350,000 more per shift. I would imagine the large companies had similar profits over this time. I don't begrudge them these profits as they have kept us running when they were losing money but every mill in the west made lots of money this year. The mills don't control the price, that is set somewhere between us and the public. We put our lumber for sale and the highest bidder gets it. We have to sell no matter if it is high or low.



I am just going by the financials that they are reporting to the IRS & SEC. Both are public companies and I would be very surprised if they and their auditors are lying about those numbers.


Mean As Nails
Re: What is making lumber prices go up [Re: gregh] #7110580
12/29/20 12:27 PM
12/29/20 12:27 PM
Joined: Dec 2014
Posts: 152
ontario
G
grampy Offline
trapper
grampy  Offline
trapper
G

Joined: Dec 2014
Posts: 152
ontario
Prices are sky high in Canada. Osb 7/16 took a jump from $13/14's to 39.99. 2x6" studs and 8 ft priced at $10.99. Canadian! Today's prices.I don't understand how tariffs can be the cause for the increase.

Re: What is making lumber prices go up [Re: gregh] #7110625
12/29/20 01:01 PM
12/29/20 01:01 PM
Joined: Feb 2017
Posts: 1,125
Priest River, Idaho USA
S
SundanceMtnMan Offline
trapper
SundanceMtnMan  Offline
trapper
S

Joined: Feb 2017
Posts: 1,125
Priest River, Idaho USA
Grammy
Does Canida import lumber from the U.S.? The tariffs I was talking about are on Canadian lumber coming into the U.S.. I had never thought about wood going into Canada and having tariffs placed on it.

White17
Are those numbers for second and third quarter profits this year or before that? I just can't believe they didn't do better than that since April.

Last edited by SundanceMtnMan; 12/29/20 01:02 PM. Reason: Wrong word

"They Say Nothing is Impossible,
But, I Do Nothing Every Day."
Re: What is making lumber prices go up [Re: SundanceMtnMan] #7110645
12/29/20 01:20 PM
12/29/20 01:20 PM
Joined: Mar 2007
Posts: 31,724
McGrath, AK
W
white17 Offline

"General (Mr.Sunshine) Washington"
white17  Offline

"General (Mr.Sunshine) Washington"
W

Joined: Mar 2007
Posts: 31,724
McGrath, AK
Originally Posted by SundanceMtnMan

White17
Are those numbers for second and third quarter profits this year or before that? I just can't believe they didn't do better than that since April.



End of the third quarter. Sept 30, 2020.

OK I don't normally pay any attention to WY or LPX but I dug around a bit in their last 10K &10Q reports as well as the last annual reports available which is for 2019. I can understand how this looks so deceptive.
In 2019 both companies had net losses of multiple millions of dollars mainly due to forest fires. So the margins we are seeing now reflect the write-offs of those losses against current revenues and earnings.

We also need to remember that both companies operate outside the US also and are engaged in other types of business ( mining) so it isn't all making and selling OSB in the USA. One thing that I learned is that both companies are complaining ( warning actually) that their cost for resin is accelerating. That would make sense if they are using more of it while their supplier can't keep up with demand.

So the 7% I cited is for the whole company and all segments of their business in the aggregate.

No question that their OSB lines of business are doing well. But there is more to the story than that segment.

There was a little chart in the report that was interesting. I can't get it to paste here with the format. But this is the gist of it:

Wholesale price of 7/16" OSB per thousand square feet reported in Louisiana Pacific 2019 annual report

North Central USA 2017 = $ 353; 2018 = $350; 2019 = $210

Western Canada 2017 = $326; 2018 = $ 307; 2019 = $166

Southwest US 2017 = $ 334; 2018 = $ 319; 2019 = $ 177


Mean As Nails
Re: What is making lumber prices go up [Re: gregh] #7110661
12/29/20 01:36 PM
12/29/20 01:36 PM
Joined: Dec 2010
Posts: 8,049
Armpit, ak
D
Dirt Offline
trapper
Dirt  Offline
trapper
D

Joined: Dec 2010
Posts: 8,049
Armpit, ak
I think the lumber market has been stimulated. Housing is one of the governments favorite industries to stimulate.


Who is John Galt?
Re: What is making lumber prices go up [Re: gregh] #7110920
12/29/20 05:38 PM
12/29/20 05:38 PM
Joined: Nov 2017
Posts: 6,221
Maine, Aroostook
Posco Offline
trapper
Posco  Offline
trapper

Joined: Nov 2017
Posts: 6,221
Maine, Aroostook
I worked for LP for five years up until about three years ago. The plant turned a profit one of those five years and we were constantly under the threat of the mill shutting down. More recently, they've been considering manufacturing a pressed siding.

There are a lot of big players in the OSB game and the competition is stiff. It drives the price of OSB into the dirt. It's not the manufacturers making the big profit.

Last edited by Posco; 12/29/20 05:48 PM.
Page 5 of 5 1 2 3 4 5
Previous Thread
Index
Next Thread