Lumber Sellers Rake in Record Profits on Home Renovation Binge

(Bloomberg) — Canadian lumber companies that pulled in record earnings are optimistic about next year despite lower wood prices, as they see the wave of home building and renovations continuing.

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Norbord Inc., North America’s biggest producer of oriented strand board (OSB), reported record third-quarter revenue while Resolute Forest Products Inc.’s wood segment saw record-high income, boosted by soaring lumber prices and strong demand from home building and do-it-yourself renovations amid the Covid-19 pandemic.

The long-term growth prospects Norbord sees for the wood-chip panels used in walls and floors could keep costs high for home buyers. In October, the National Association of Home Builders said higher wood costs lifted the selling price of an average, new single-family home in the U.S. by $15,841 since mid-April and that one-third of this increase was due to higher prices for the plywood substitute.



chart: OSB prices more than doubled from April


© Bloomberg
OSB prices more than doubled from April

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