Weekly Roundup: Lumber price hike, increase in asphalt shingles’ value in June, & more

Weekly Roundup: Lumber price hike, increase in asphalt shingles’ value in June, & more

June 25, 2019

Supplier Insider is a weekly roundup of the latest news and insights relevant to construction suppliers.

Lumber prices rise as Canadian mill closes

June saw the sharp climb of lumber prices following the announcement that one of the largest producers in North America will close a mill in British Columbia. WSJ

  • West Fraser Timber Co. announced the permanent closure of one of their mills that produces 314 million board feet of lumber every year.
  • A 34% rise on lumber prices was observed on the Chicago Mercantile Exchange recently. At some point in June the price climbed to $409.40 per 1,000 board feet.
  • Over a billion board feet of lumber has been cut off from production in recent weeks, which has greatly impacted lumber supply and prices in the US.

Asphalt shingles value to reach $11 billion by 2026

The asphalt shingles market is set to be valued at $11 billion in the US by 2026 as more sustainable and energy efficient projects are initiated in the coming years. Globe News

  • Infrastructure growth and efforts to build megacities will contribute to the projected increase in asphalt shingles value, according to Acumen Research and Consulting.
  • The projected spike in value applies worldwide as asphalt shingles become increasingly popular as the top roofing material across the globe.
  • Statutory regulations that favor more sustainable building options in the US will also improve the demand for asphalt shingle’s market value.

BlueLinx sells distribution facilities

BlueLinx Holdings sold two of its distribution facilities in Des Moines and Minneapolis for approximately $12 million. HBS Dealer

  • BlueLinx Holdings is a build products distributor that consolidated its Des Moines and Minneapolis operations into its recently acquired Cedar Creek facilities.
  • The proceeds from the sale of its two facilities were used to repay debt per its company’s revolving credit system.
  • BlueLinx currently operates in 40 states across the US.
  • “We will continue to look for opportunities to monetize our real estate assets to further reduce our overall leverage,” said BlueLinx President Mitch Lewis.